Daimler places $38 million bet on Volocopter

German-based aviation firm, Volocopter, has announced it has received a €25 million ($A38 million) investment from a consortium led by Daimler.

Volocopter is behind a new concept for a pure-electric, fully autonomous passenger drone that's been designed to operate as a faster, more efficient alternative to a taxi in built-up urban areas.

Featuring a range of more than 27km, the Volocopter has been designed to carry two passengers and is claimed to be at an advanced stage of development with a provisional license already granted by the German aviation authority.

Perhaps even more surprisingly, the small German start-up -- which was created in 2011, has already entered into an agreement with Dubai to ensure the first licensed Volocopter goes on the market as soon as next year.

The new investment will be used to employ additional engineers to help speed up the development of flight systems, software and electric propulsion.

Manned tests have already been completed of a prototype version of the aircraft, including a real-world simulation of its ballistic parachute deployment.

Unfortunately, even with Daimler's cash injection, Volocopter's odds are stacked against it.

As well as US-based Terrafugia readying a similar aircraft, the biggest rival is likely to come from commercial aircraft maker Airbus, which is using its considerable resources to create its own autonomous aircraft taxi.