Japanese startup SkyDrive, picked as a flying car operator for the 2025 World Expo in Osaka, has announced its decision to give up commercial operation of the vehicle at the event.

The firm was bidding to launch the first transportation service using a flying car in Japan.

At the expo, SkyDrive now plans to use its flying car, currently under development, only for demonstration flights, instead of carrying actual passengers.

The SkyDrive flying car, a small electric aircraft, is capable of vertical takeoffs and landings, and can accommodate up to three people — two passengers and the pilot.

The company, based in Toyota, Aichi Prefecture, has applied for certification with the U.S. Federal Aviation Administration. The application was accepted on April 29.

SkyDrive now aims to have the flying car make its commercial debut in Japan in 2026 or later.

Three other Japanese companies — Japan Airlines, industry peer ANA Holdings and major trading house Marubeni — will also operate flying cars at the Osaka Expo, to be held on Yumeshima, a manmade island.