The company is already working to establish four 'vertiports' in Dallas for the small VTOL aircraft.

Uber is reportedly aiming to launch a fleet of autonomous flying taxis in two cities by 2020.The ride-hailing company will use small electric aircraft capable of vertically taking off and landing (VTOL), according to a Reuters report quoting product chief Jeff Holden's comments at the Uber Elevate Summit.

The company is already collaborating with five different aerospace industry veterans, including Bell Helicopter and Embraer, to talk about building the aircraft. Separate discussions with Hillwood Properties in Dallas are focused on developing four 'vertiports,' while a partnership with Dubai officials could lead to passenger flights in the country at the World Expo 2020.

"What we're doing with them is they're going to be funding studies for demand modeling so that we can deeply understand pricing and network optimization in the Dubai area," Holden said.

The report coincides with Kitty Hawk's demonstration of a single-person multirotor aircraft. The Flyer is initially intended to be used only as a recreational toy over water at altitudes of no higher than 15 feet above the surface, but the company is developing more advanced aircraft for other purposes.