Uber will work with the US army on technology to power flying taxis.
The flying vehicles could also have military applications, the car company said in a joint statement with the Army's Research, Development and Engineering command.
They said development and testing of prototypes, designed to be quieter than current systems, will cost $1 million.
"Achieving ultra-low noise is one of the critical obstacles" to deploying aerial taxis in urban areas, Rob McDonald, head of vehicle engineering for Uber Elevate, the company's flying car operation, said in an interview with Reuters.
For the Army, creating drones that can be launched without runways and operate discretely over enemy terrority is the objective. Working with private companies can help the military innovate more efficiently, according to Dr. Jaret Riddick, director of the U.S. Army Research Laboratory's Vehicle Technology Directorate.
Uber wants to launch prototype airborne taxis by 2020.