Be wary of going all out for first mover advantage, writes David Gilroy. “See you out there somewhere in the cosmos”. These are the last words of Gil Gerard the American actor who played the title character in the sci-fi series “Buck Rogers in the 25th Century”. Gil needn’t have worried. The cosmos just came to us. It won’t be long before you can fly into London City airport, open your wrist communication device and order a flying electric cab. You will be home in Cambridge within an hour.
Vertical Aerospace Ltd. is a British aerospace company at the forefront of developing electric air taxis (also known as eVTOLs — electric Vertical Take-Off and Landing aircraft). The company has become the most prominent UK player in this emerging sector and is widely referenced as central to the UK’s first electric air-taxi service plans. Vertical Aerospace’s next generation eVTOL aircraft is called Valo (evolving from earlier prototypes like the VX4). It is designed to be all electric with zero operating emissions, able to carry a pilot plus up to six passengers. It has flight ranges of around 100 miles and cruise speeds of up to 150 miles per hour. Vertical Aerospace is targeting safety certification by 2028 followed by a full commercial service for early 2029 from London to various locations such as Canary Wharf, Heathrow, Gatwick, Oxford and Cambridge. Vertical isn’t developing eVTOL services alone. It’s UK efforts involve a range of strategic partners including Skyports Infrastructure building and operating vertiports (landing sites) to support electric air taxi networks. Also, Bristow Group, an experienced aviation operator that will handle services like pilots, and operational logistics, using support through existing Air Operator Certificates. Vertical Aerospace stands out as the UK’s primary company developing the first electric air taxi aircraft and service network. The project is seen not just as a technological milestone but as a boost for the UK economy, potentially creating thousands of skilled jobs and contributing billions to growth as advanced air mobility scales.
For those of us who never tire of the thrill of air travel, this is all very exciting. And the great joy of it is that a British company would appear to have first mover advantage. The concept of first mover advantage is much vaunted in business academia and is taught widely in MBA courses. What is it? In competitive markets, timing can be as decisive as talent, capital, or technology. The concept of first mover advantage refers to the benefits a firm may secure by being the first to enter a new market, introduce a novel product, or establish a new business model. While being first does not guarantee long-term success, history shows that early movers often shape industries, set standards, and enjoy enduring advantages that later entrants struggle to overcome. Understanding the merits of first mover advantage helps explain why firms race to innovate and why speed to market remains a central strategic concern. One of the most visible merits of first mover advantage is early brand recognition. When customers encounter a new category, the first brand they experience often becomes the reference point. Over time, this familiarity can evolve into trust and loyalty. Consumers may associate the pioneer with authenticity or expertise, making them less inclined to switch even when alternatives emerge.
This phenomenon is especially powerful in consumer markets where habits and emotional connections matter. Early movers can shape customer expectations around pricing, quality, and features, effectively setting the benchmark that others must meet or exceed. The longer a firm maintains this early relationship with customers, the more difficult it becomes for competitors to dislodge it. First movers often enjoy technological leadership by accumulating knowledge and experience ahead of rivals. Early entry allows firms to experiment, refine processes, and learn from real-world usage. This learning curve advantage can translate into superior products, lower costs, or faster innovation cycles. As first movers scale, they may also benefit from economies of scale that reduce unit costs. Another significant merit of first mover advantage lies in the ability to secure scarce or valuable resources before others can. These resources might include prime physical locations, exclusive supplier contracts, proprietary data, intellectual property, or access to distribution channels. Once acquired, such assets can serve as barriers to entry that protect the first mover from competition.
While the merits of first mover advantage are many and substantial, they are not automatic. Early entrants also face risks, including uncertain demand, immature technology, and high development costs. Our industry tends to be cautious around being first mover. I have worked with several senior figures who would rather be “second movers”. They prefer to stand back and watch developments before plunging in. This lower risk and cost approach is often backed up by the evidence. For example, those firms moving early into online trading paid a lot of money for web development compared to businesses today. The same applies to app development. Websites and apps can now be up and running in short order and at low cost. Companies like Hoover who managed to get their brand name into the vernacular vocabulary: “to do the hoovering” have been overtaken by competitors. Dyson is now the world’s leading brand. Apple pioneered the iPhone thus creating the smartphone market. Now they are slightly behind Samsung in market share and have Xiaomi hot on their heels. As we know, our industry is all about cost management with tight profit margins. The first mover concept must be a sure-fire winner, or it is likely to punch a hole in the numbers before the benefits (if any) are accrued. By definition, a pioneering project can’t guarantee quick success. So better to evaluate and be a second mover.
The patriot in me hopes that Vertical Aerospace becomes a massive British success, but it already has competitors circling. Notably Joby Aviation (USA), Archer Aviation (USA), EHang (China) and Volocopter (Germany). And it is likely that any of the first wave players could be swallowed by Boeing, Airbus, Toyota or other major aerospace manufacturers playing the second mover game.
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