It's a bird, it's a plane, it's a... SPAC? NY-based helicopter taxi service Blade is going public by merging with a SPAC, aka: "blank-check company." A SPAC is a company without a company, that goes public for the sole purpose of one day buying a real company (in this case, Blade). The deal values the helitaxi company at $825M, up from its $140M 2018 valuation.
Channeling Blair Waldorf... Blade is like an aerial Uber for Manhattan's Elite (XOXO, Gossip Blade). The seven-year-old startup caters to wealthy city dwellers looking for a faster escape to Nantucket and the Hamptons (40-minute flight to East Hampton = $795/seat). It also offers seaplanes and private jets.
- The biz model: Like Uber, Blade doesn't actually own any of its choppers or planes — it connects passengers with charter operators.
- The app model: Also like Uber, Blade has an app that lets you book flights in seconds and receive live updates on your Aspen-bound jet.
- The perk model: Not like Uber, Blade offers luxury lounges to chill in pre-flight (free appetizers always justify lofty prices).
Blade could fly downmarket... Tesla's first strategy was entering at the high end of the market — offering a pricey premium product for wealthy consumers — and then moving down (see: Elon's Master Plan). Similarly, Uber originally only allowed customers to hail a black luxury car that cost more than a cab. While these products still aren't cheap, they've become much more accessible over time. Blade could also end up cutting its costs in exchange for volume and scale.