The flying taxi, which looks like a tiny helicopter, took off and landed vertically over the Bourget airport with no passenger on board during a three-minute flight.
It flew a 500 metres route at speeds up to 30 kilometres per hour and 30 metres high along the airfield, Volocopter said in a statement.
Volocopter CEO Florian Reuter said the urban mobility market is "gigantic".
"Urban mobility is a more than 10 trillion dollar market," Reuter said. "We estimate that, by 2035, we can serve a market that has around 300 billion dollars in opportunity."
He also said the flying taxi service would first operate with a pilot licence but he expects the flight would be fully automated over a period of time.