Joby Aviation said on Wednesday the U.S. aviation regulator has given the nod for flight testing of its air taxi, as it edges towards securing approval to begin commercial operations.

The California-based company also said Toyota North America's CEO, Tetsuo Ogawa, will join its board on Saturday. Toyota is Joby's largest external shareholder, having invested around $400 million in the company.

Joby plans to begin commercial passenger operations in 2025. Unlike other electric vertical takeoff and landing (eVTOL) aircraft manufacturers, which plan to sell aircraft to customers such as airlines and logistics companies, Joby's business model is similar to a rideshare app.

Once certified, the eVTOL maker will compete in a crowded market with dozens of other developers such as Archer Aviation and Vertical Aerospace Ltd vying to revamp urban transportation.

Joby said the Federal Aviation Administration (FAA) had granted a Special Airworthiness Certificate which allows flight testing of its first production prototype without passengers.

The aircraft will be delivered to Edwards Air Force Base after completing initial testing, the company said. The delivery is made under Joby's $131 million contract with the U.S. Air Force. Under the deal, the company will deliver the first two electric aircraft in March 2024.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Krishna CHandra Eluri)