United Parcel Service announced it has agreed to purchase of 10 electric vertical takeoff and landing aircraft from Beta Technologies. CNBC's Frank Holland reports. For access to live and exclusive video from CNBC subscribe to CNBC PRO: 🤍cnb.cx/2NGeIvi Beta Technologies, which agreed to sell electric vertical takeoff and landing aircraft to United Parcel Service, sees the deal as a major milestone for the acceptance of eVTOLs as commercially viable. “UPS is a step function change for our business,” Beta founder Kyle Clark told CNBC ahead of Wednesday’s announcement. “It telegraphs to the entire business community that electric vertical aircraft are real.” Beta Technologies will design and build 10 of its Alia-250 eVTOLs to be delivered to UPS in 2024, pending certification from the Federal Aviation Administration. The aircraft is powered by an electric battery. It has five propellers, allowing it to take off vertically like a helicopter and then fly like a plane. It can carry 1,400 pounds. It can travel up to 250 miles at 170 mph once fully charged, which takes 50 minutes. UPS, headquartered in Atlanta, plans to test the eVTOLs in its Express Air delivery network to replace small planes that can carry 500 to 3,000 pounds. “Global customer acceptance of electric vertical aircraft is something that isn’t going to happen overnight, and the trust and the validation ... is produced when a company like UPS safely flies these things between airports and distribution centers, and on airport and off airports,” said Clark. “That experience or just the emotive response of the general public to know that they’re not the first ones getting on — so this has been flying, hundreds of aircraft in millions of hours of packages — is the right way to approach this market, and it’ll put us significantly up on our competition.” There’s growing competition in the emerging eVTOL market, with another start-up, Archer, announcing in February an investment from United Airlines. Silicon Valley-based Archer plans to build a four-passenger aircraft that can travel 60 miles at up to 150 mph. Archer is aiming to have it’s eVTOL delivered to customers by 2024, if certified by the FAA. In December, California-based Joby Aviation bought the Uber Elevate flying taxi service, with plans to have its eVTOL aircraft entering service as soon as 2024. Wisk, established in 2019 as a joint venture between Boeing and aircraft maker Kitty Hawk Corp., started testing autonomous eVTOLs taxis in New Zealand. Beta Technologies and UPS are not disclosing the financial terms of the deal, however, UPS holds an option to purchase up to 150 more eVTOLs from Beta. UPS also has embedded a staff member at Beta’s Burlington, Vermont headquarters to identify and address any issues with “how do you load this thing, how do you unload it, what does the pilot need for a cockpit, how do you get the trucks in and out next to it,” Clark said. “All these things that make us have a better product in the future [and] are enabled by an early commitment by UPS like this.” It’s “the first meaningful customer order in the electric-vertical aerospace aircraft space, and it’s a real order, and that differentiates us very quickly,” said Clark. “We’ve really focused on getting a real partnership engaged with UPS, getting a real order in place and having a clear path to deployment, in our ability to recruit people, to partner with the best aerospace companies in the world, and of course to get additional orders.” Wedbush analyst Dan Ives estimates there will be approximately $300 billion in eVTOL spending by 2028. Beta Technologies said it will focus on providing aircraft to commercial customers for now but will eventually sell to private individuals. Clark said the full scope of what eVTOLs can be used for is still being figured out, but he considers the aircraft Beta is delivering to UPS as the start of the next chapter for his company and the industry. » Subscribe to CNBC TV: 🤍cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: 🤍cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: 🤍cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: 🤍🤍cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?source=youtube%7Cshepsmith%7Cpodcast Connect with CNBC News Online Get the latest news: 🤍🤍cnbc.com/ Follow CNBC on LinkedIn: 🤍cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: 🤍cnb.cx/LikeCNBC Follow CNBC News on Twitter: 🤍cnb.cx/FollowCNBC Follow CNBC News on Instagram: 🤍cnb.cx/InstagramCNBC 🤍🤍cnbc.com/select/best-credit-cards/ #CNBC #CNBCTV
Wrong manufacturer. Should be fully autonomous. Therefore either Ehang or Joby
What’s these evitouls? 🥴
Are they replacing the trucks or the planes?
The planes.. 🥴
They’re looking at drones in the long term 🥴
Would someone please ensure that television personnel are educated, or the programming is vetted by someone who is, before releasing this garbage, and embarrassing themselves in public?
VERY BEST COPY CESSNA 337 PULLER PUSHER LITTLE MODIFICATION TALE.
I start UPS on 7/9 if it gets certified, I’ll be ready for this position before 2024.
Pusher and two tractors what can go wrong...
Yawwwn. They just need to make a robot transformer that can fly, then areive at your house and eject packages from its chest like Soundwave.
So this is why my TV I ordered last week looked like it fell off a skyscraper.
FCC going to love this one
UPS buys sophisticated planes and still make money. USPS buys electric cars and ask for bailout and loses money. Government working for you.
Lol these jokers couldn't deliver a parcel of u lit the way to the persons house they keep ya packages or batter the boxes I personally stopped using these time ago there's complaint pages all over fb with all there lil tricks
"electric vehicles and takeoff" 🤔
Waste of time and money.... they should have thrown that money at Tesla and said "make our trucks autonomous"
These planes are garbage unit economics.
Efficiency in this field, means less jobs.
Good. Bye bye UPS drivers. Thank God
Yes!!!!...my next position at UPS🤘🖖
They still gon' steal our packages...
That never happen to house to house .