Flying taxis just got another step closer to reality as $1 billion startup Archer received approval for commercial operations

• Archer Aviation announced it has received a certificate for commercial operations from the FAA.
• However, it still needs certification for its Midnight eVTOL — on track to launch next year.

Archer Aviation has received the green light for commercial operations.

The California-based company, which has a market capitalization of $1 billion, announced Wednesday that the Federal Aviation Administration has granted it a Part 135 air carrier and operator certificate.

It marks a major step forward for the firm, which is helping pave the way for electric-vertical-take-off-and-landing aircraft or eVTOLs — often referred to as air taxis.

Archer hopes to transform urban travel, replacing an hourlong commute with a 10-minute flight on its quiet, sustainable aircraft.

CEO Adam Goldstein previously told Business Insider that a seat should cost about $100. The aim is to replace ride-share services between city centers and airports.

Archer said the FAA certificate allows it to refine its systems before it launches services for customers like United Airlines.

However, its flagship aircraft, Midnight, still needs certification.

United Airlines has bet big on Midnight, placing a $1 billion order for the vehicle in 2021.

In Wednesday's press release, United's chief financial officer, Mike Leskinen, said: "The pace of progress and innovation that Archer has achieved over the last few years is nothing short of impressive and today marks another key milestone in their journey to bring safe, sustainable, and low-noise air taxi services to market."

"Together, we look forward to shaping the future of air transportation and delivering unparalleled flying experiences to United passengers," he added.

Archer is the second eVTOL company after Joby Aviation to announce receipt of a Part 135 certificate from the FAA.

The first commercial air taxi flights are planned for the Paris Olympics, courtesy of the German startup Volocopter. Archer is aiming to debut commercial flights next year.