Seoul — US ride-hailing company Uber Technologies and South Korean carmaker Hyundai Motor have teamed up to develop electric air taxis, joining the global race to make small self-flying cars to ease urban congestion.

Global players such as Germany’s Daimler, China’s Geely Automobile and Japan’s Toyota have all unveiled investments in start-ups that aim to deploy electric flying cars capable of vertical take-off and landing — but there are big technological and regulatory hurdles to the plans...

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