Signage is seen on a FedEx location in Manhattan, New York City

March 30 (Reuters) – U.S. delivery firm FedEx Corp’s (FDX.N) subsidiary, FedEx Express, will begin testing Elroy Air’s Chaparral autonomous air cargo system next year, the companies said on Wednesday.

Legacy aviation and automotive industry players including Boeing (BA.N), Embraer (EMBR3.SA), Airbus (AIR.PA), United Airlines (UAL.O), Toyota Motor Corp (7203.T) and Stellantis (STLA.MI) are among the companies pouring money into the nascent electric vertical takeoff and landing (eVTOL) aircraft.

California Bay Area-based Elroy Air’s Chaparral, launched in January, is an eVTOL aircraft that can lift 300 pounds to 500 pounds of cargo and deliver it by air up to 300 miles, the companies said. Read more