Ride sharing business Uber has sold off its flying taxi unit Elevate to California-based electric aircraft developer Joby Aviation.
Elevate is the second business Uber has sold off this week as the company seeks a path to profitability.
On Monday, Uber announced the sale of its self-driving unit to autonomous vehicle start-up Aurora.
Joby and Uber, however, described the latest transaction as an "expanded partnership".
"This deal allows us to deepen our partnership with Joby, the clear leader in this field, to accelerate the path to market for these technologies," Uber's chief executive Dara Khosrowshahi said in a statement.
Under the deal, Uber will also invest and additional $75m (£56m) in Joby Aviation.
Elevate began in 2016 and, until earlier this year, its team had promised the launch of flying taxi services in Los Angeles, Dallas and Melbourne in 2023.
Joby was a partner in Elevate before taking over the business, and the two companies said they would each integrate the other company's services into their own app.
"These tools and new team members will be invaluable to us as we accelerate our plans for commercial launch," said Joby founder JoeBen Bevirt in a statement.