Rami Levi’s Flying Taxi Dream Stalls Amid Regulatory and Security Challenges in Israel
In May, Israeli media reported plans for a pilot project involving flying taxis operating from a new helipad at the "Park and Ride" lot near the Shfayim highway lanes. The initiative, promoted by Tel Aviv Municipality and Netivei Ayalon, would use large drones capable of carrying two passengers. The flying taxi model was showcased by Transportation Minister Miri Regev at the "Smart Transportation" conference, with the drone provided by Dronery, a subsidiary of Cando Drones, controlled by businessman Rami Levi. Cando Drones is preparing for an initial public offering on the Tel Aviv Stock Exchange with a pre-money valuation of 83 million shekels. Their eVTOL (electric vertical takeoff and landing) drone, based on the Chinese EHang 216 model, can carry two passengers over tens of kilometers.
However, the project is currently stalled. According to Cando’s recent prospectus, the flying taxi pilot was frozen due to the outbreak of the Iron Swords war, public concerns about drone operations in civilian airspace, and regulatory restrictions on urban air activities. The company has no clear timeline for resuming test flights or obtaining necessary civil aviation authority approvals. The choice of the Chinese EHang 216 drone, while relatively reliable and licensed in China, poses licensing challenges in Israel, which follows Western aviation standards and requires pilot override capabilities absent in the autonomous EHang model.
Globally, the eVTOL industry faces setbacks. Leading companies like Lilium have gone bankrupt or sold at low valuations, while US firms Joby and Archer remain far from full certification. EHang itself reported a sharp sales decline and widening losses in early 2024, relying mainly on drone shows for revenue. Its stock has dropped 54% this year, and UBS downgraded its rating due to commercialization delays and regulatory dependence. In Israel, the lack of urban landing pads and noise concerns further hinder flying taxi deployment, relegating the technology to niche tourism and leisure markets for now.
Cando Drones sees more immediate commercial potential in cargo delivery. It received a 9 million shekel grant from a 54 million shekel national drone initiative and has completed about 1,200 medical supply flights between hospitals such as Hadassah, Rambam, Ziv, and Assaf Harofeh. Other Israeli companies like AirEV and Attis are developing electric flying vehicles for cargo, benefiting from less stringent regulations allowing autonomous flights without pilots. However, experts stress the need for a national strategic plan to advance drone transportation, which currently does not exist.
The Ministry of Transportation stated it is advancing a national drone pilot program involving tens of thousands of flights to test cargo airlift capabilities, dedicated air corridors, traffic management systems, and safe operation conditions for unmanned aerial vehicles in civilian airspace. The ministry is also preparing infrastructure for a future air transport network that could eventually support passenger and cargo drone flights. Meanwhile, Cando Drones has remained silent ahead of its IPO.
