Joby Aviation, an electric passenger aircraft developer, said it would take over Uber Technologies' flying taxi unit, Elevate.
This marks the second cash-burning business the lift-hailing company has sold off in two days.
Joby did not disclose the terms of the deal, but said Uber had also agreed to invest a further $75m in the Santa Cruz, California-based company, bringing its total investment to $125m.
Joby has raised more than $720m in funding since it was founded in 2009, most of it from Toyota.
Uber earlier this week announced the sale of its self-driving unit to autonomous vehicle startup Aurora in a move it said would accelerate the ride-sharing company's goal to achieve profitability.
Uber has promised investors to achieve profitability on a basis of adjusted earnings before interest, taxes, depreciation and amortization by the end of 2021.
During the last quarter, Uber reported a $625m adjusted EBITDA loss.
The company has said it would focus on its core lift-hailing and food delivery platforms to achieve profitability and implemented stringent cost cutting measures, including large rounds of layoffs.
While losses at Uber's self-driving, Elevate and other technology programmes had slightly narrowed this year, the company still reported a third quarter $104m adjusted EBITDA loss for the segment.
Elevate began in 2016 and its team until earlier this year promised the launch of flying taxi services in Los Angeles, Dallas and Melbourne in 2023.
Uber and Joby said they would each integrate the other company's services into their own app to allow customers to book seamless ground and air transportation in the future.
Uber in January announced it had partnered with South Korean automaker Hyundai to develop electric air taxis as part of its Elevate programme.
