FILE PHOTO: A sign showing the name of German truck maker Daimler is pictured at the IAA truck show in Hanover, September 22, 2016. REUTERS/Fabian Bimmer/File Photo

FRANKFURT (Reuters) - Germany’s Volocopter said it has received 25 million euros ($30 million) in funding to develop an electric flying taxi, with car and truck maker Daimler among the firms providing fresh cash.

Daimler joined a consortium which includes technology investor Lukasz Gadowski, who sits on the supervisory board of Delivery Hero, and others, Volocopter said on Tuesday.

Volocopter said it is developing a five-seat vertical take off and landing (VTOL) electric vehicle aimed at the taxi market and plans to carry out initial demonstrations in the fourth quarter of 2017.

Potential competitors to Volocopter include German start-ups Lilium Jet and eVolo, as well as U.S.-based Terrafugia and California-based Joby Aviation. Commercial aircraft and helicopter manufacturer Airbus is also developing a single-seat “flying car.”