A GERMAN tech firm has vowed to develop a five-seat "flying taxi" after it successfully carried out a test flight of a smaller airborne automobile.

Munich-based Lilium said the planned five-seater jet, which will be capable of vertical take-off and landing, could be used for urban air taxi and ride-sharing services. 12 12 12

12 These shots show the maiden flight of the flying car, which is capable of taking off vertically

In flight tests, a two-seat prototype took off vertically before zooming off like a traditional plane.

Potential competitors to Lilium Jet include much bigger players such as Airbus, the maker of commercial airliners and helicopters that aims to test a prototype self-piloted, single-seat "flying car" later in 2017.

Slovakian firm AeroMobil said at a car show in Monaco on Thursday it would start taking pre-orders for a hybrid flying car that can drive on roads and hopes to start production in 2020.

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12 These official shots show the flying car in all its glory

But makers of "flying cars" still face hurdles, including convincing regulators and the public that their products can be used safely.

Governments are still grappling with regulations for drones and driverless cars.

Lilium said its jet, with a range of 190 miles and cruising speed of just under 200mph, is the only electric aircraft capable of both vertical take-off and jet-powered flight.

"We have solved some of the toughest engineering challenges in aviation to get to this point," Lilium co-founder and chief executive Daniel Wiegand said in a statement.

The jet, whose power consumption per km is comparable to an electric car, could offer passenger flights at prices comparable to normal taxis but at speeds of up to five times faster.

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12 These renderings show Lillium's vision of a future where flying cars zoom above cities

Lillium raised $11.4 million (£8.9 million) in 2016 from Zennstrom-led venture firm Atomico Partners and e42, the investment arm of entrepreneur Frank Thelen, a juror on the German investment reality TV show "Lion's Den".

Other potential rivals include crowd-funded eVolo, a firm based near Mannheim that has said it expects to receive special regulatory approval for its two-seat "multicopter" with 18 rotors to be used as flying taxis in pilot projects by 2018.

Terrafugia, based outside the U.S. city of Boston and founded a decade ago by MIT graduates, aims to build a mass-market flying car, while U.S.-Israeli firm Joby Aviation has said it is working on a four-seater drone.

Google, Tesla and Uber have also reportedly shown interest in the new technology.