Over the years, JetSmarter has attracted investments from Jay-Z, the Saudi Royal family, and execs from Twitter and Goldman Sachs. We have also announced our series C funding raise of $105 million, at a $1.5 billion pre-money valuation, from existing and new strategic investors. The company faces unknown costs from the lawsuits and refunds, the class action lawsuit, and the outcome of the investigations by the FAA and FBI. People are becoming more and more interested in Sergey Petrossov because of how much money he makes. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. In 2009 when I began flying private, I quickly came to realize that the private jet industry was very archaic; its brick-and-mortar process of picking up the phone, waiting hours and speaking to numerous different people in order to charter a jet was outdated and inconvenient. Just hail a private jet", "Interview: How Sergey Petrossov revolutionized private jet business", "The JetSmarter App Puts Air Travel at Your Fingertips", "JetSmarter puts a jet in your pocket, and is happy to see you", https://privatejetcardcomparisons.com/2018/09/08/jetsmarter-flight-diverted-after-threats-from-a-passenger/, https://www.miamiherald.com/news/business/article229059544.html, "Meet the private-jet startup backed by Jay Z and the Saudi royal family", "An 'Uber for private jets' startup just raised $20 million from Jay Z and the Saudi Royal Family", "With $20M In The Bank, JetSmarter Is Building The Uber Of The Skies", "Private-Jet Booking App Lands $105 Million in Funding", "JetSmarter Raises $105 Million for Uber-Like Services in the Sky", "Jay Z-backed private jet firm JetSmarter raises $105 million at $1.5 billion valuation", "Jet Membership Seller JetSmarter Raises An Undisclosed Amount Of Institutional Capital Private Jet Card Comparisons Know Before You Buy", "Lawsuits, layoffs, safety concerns, and now lack of flights cloud JetSmarter's future", "Need a Private Jet in a Pinch? It's very expensive but worth it to get on a private plane to go somewhere if you've got that kind of money, of course. Our goal is to one day make all air travel private. We and our partners use cookies to Store and/or access information on a device. Sergey Petrossov is thus an ideal successful young entrepreneur. It required literally calling to book and signing papers. JetSmarter was losing money hand over fist so it went through three investment rounds to raise. Petrossov, a native of Russia and graduate of the University of Florida, had been involved with two tech startups before launching JetSmarter in 2013. We spend a lot of time asking members to spread the word. [15], On June 27, 2019, Vista Global announced it had combined JetSmarter with its XOJET subsidiary rebranding the combined entity as XO, powered by JetSmarter technology. When it comes to private jets, you think Jay-Z flying for $60,000. Hes had that spirit, he says, since his teens. Is this another Elizabeth Holmes or Billy McFarland situation or did JetSmarter expand too quickly? Sergey Petrossov. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. According to former employees, in 2016 and 2017, JetSmarter was losing $5 million a month. Petrossov knows this and is always trying to think of ways to improve areas that are lacking in technology. The main difference between JetSmarter and its close competitors is that JetSmarter gives members the flexibility to create flights on their time or find seats on flights created by fellow members all with the year-round reliability, efficiency, and service that are synonymous with flying private. This tailored approach seems to be working. Manage Settings In September 2018, on a flight from New York to Las Vegas, 23-year-old DJ Maurice Paola started yelling and threatening to kill other passengers. We spend a lot of time asking members to spread the word. What are JetSmarters expansion plans for the future? In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. JetSmarter was founded in 2012 by entrepreneur Sergey Petrossov,[5][6] whose idea made him one of Forbes' "30 Under 30" business leaders of 2016. Petrossov formed relationships in aviation by going to trade shows. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. JetSmarter aggregates. The company has also been known to sue journalists for writing articles critical of the company if they do not take down the article. His inspiration for the idea began in 2009 when he started using private jets to travel, and he realized that the archaic, and mostly-analog, industry had plenty of opportunities for innovation and growth. Can the company ever be profitable without the all you can fly private jet memberships that made it famous and attracted thousands of customers? Support. [16], According to Business Insider and TechCrunch, JetSmarter raised $20 million from the Saudi Royal Family, American rapper Jay-Z, American serial entrepreneur and investor Wayne Chang,[17] and investment bank Goldman Sachs Capital Partners. For more information visit: www.jetsmarter.com. A year later, JetSmarter needed more cash. At the time, mobile marketplaces were becoming popular, and he saw a chance to apply that idea . How do you source your planes, staff and pilots? We plan to continue our global expansion, and were currently focusing on expanding in the countries where there is enough supply to satisfy demand, and are continuing to partner with carriers across the globe to offer users more inventory daily. The planes werent being utilized enough. JetSmarter has reinvented private air travel by making it affordable and straightforward, doing away with what is considered an antiquated booking system in favor of a streamlined, technological alternative. Sergey is most known for founding JetSmarter. When I was 18, I wasnt really into college that much I was more interested in getting out of college and I got involved with my first startup. We think about three pillars: how you get there, who you meet and where you go. Posts Videos Tagged. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Author Recent Posts Follow me Nancy Dahlberg 135 following. I was born in Moscow, I moved to the U.S. when I was four, and Ive lived between California and Colorado and South Florida. In 2009 when I began flying private, I quickly came to realize that the private jet industry was very archaic; its brick-and-mortar process of picking up the phone, waiting hours and speaking to numerous different people in order to charter a jet was outdated and inconvenient. [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. The world's 12 wealthiest people got richer by $36 billion in a day - and have now gained $264 billion in net worth this year. What was your vision for the mobile app? In 10 years, I think theres a big opportunity as you move into shorter-distance flights where we can actually deliver a much broader, mass-market solution, where you can actually serve customers at $500 a seat, he says. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. A few weeks later, Galvez tried to book a JetSmarter flight. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. Today, there are about 8,000 JetSmarter members. [38], In August 2018, a Los Angeles-based former member of JetSmarter filed a lawsuit seeking at least $2 million in damages from JetSmarter after the company refused to renew his membership. Marketing has long been atop the list of priorities for successful companies, and thats even truer now given the digital landscape JetSmarter exists in, which is full of advertising channels and opportunities to connect directly with the consumer base. Just go do it, he says. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. Experienced Entrepreneur. Peoples lifestyles are continuously enhanced by technology, so Petrossov never stops thinking about how to make the most of all of the gadgets and devices that people have at their fingertips. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. Petrossov talked to us about how he founded his company, the struggles of building it, where he hopes it goes, and his tips for being a successful young entrepreneur. It said it would use the money to expand services, including routes and flight frequency.[23]. Opinions expressed on this site are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. If you enjoy our content, support us by becoming a paid subscriber. Petrossov loves to fly and has traveled all over the world. Where and how did you raise capital for the company? [39] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. He filed a lawsuit against JetSmarter and its salesperson. "Steep Fees and First-Class Prices, but Private Jets Are Available to More", "JetSmarter Is Uber for Affordable Private Jets", "South Florida's flourishing private jet market attracts new entrants", "Fancy a quick getaway? When he was a student at the University of Florida, he got exposed to computer science and joined a startup for live chatting. Your education and upbringing? Serge y Petrossov is the founder and CEO of JetSmarter After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. For more information, read, How to Switch Careers Even if You Think It's Impossible, Your Resume Probably Needs a Pandemic Makeover. The first time Sergey Petrossov flew on a private jet in 2009, he was surprised. // < ! Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. JetSmarter was the first "flying unicorn," with a valuation of more than $1 billion. For Petrossov, his vision is one that goes beyond mere name recognition and service. Sergey Petrossov, CEO of JetSmarter Autopilot is a godsend for getting work done in the car Sergey Petrossov of JetSmarter in his office in Fort Lauderdale, Florida Josh Ritchie/FT Janina. We used this funding to expand our JetShuttle offerings and continue to expand globally. [CDATA[ The flight eventually continued to New York. The company is still not profitable but it isn't losing as much money on flights. I wasnt the founder but since I got involved early they called me a co-founder. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing Private Aviation Sergey Petrossov's solid work ethic and drive to succeed as an entrepreneur has been evident since. Codispoti said by email that he joined JetSmarter as CFO in October. A seasoned jet setter, Petrossov said he defines luxury travel as flying around the world on your personal VIP configured Boeing BBJ or Airbus ACJ. His best travel tip? Continue with Recommended Cookies, Your email address will not be published. // ]]> JetSmarters own Safety Audit Committee analyzes the procedures of all primary operators in the JetSmarter program. I fly three or four times a month, usually three domestic flights and one international flight, said Petrossov. Awarded Forbes 30 Under 30 in Consumer Technology, Petrossov is an entrepreneur by trade and has taken JetSmarter to heights no one would have imagined no one but himself, of course. Be the first to know about the latest in luxury lifestyle news and travel. If a friend says JetSmarter is the best, the trust factor goes up. What was your vision? When they asked for refunds, JetSmarter told them to read the legal disclosures in their membership agreements that said the company could "change, suspend, or terminate any of the services or benefits at any time." VUE caught up with Petrossov to learn more about his journey, the future of the industry and perhaps a tip or two on how to turn a simple vision into a billion-dollar reality. Petrossov talked to us about how he founded his company, the struggles of building it, where he hopes it goes, and his tips for being a successful young entrepreneur. 7 calle 1, Suite 204 That revelation inspired the 29-year-old entrepreneur to launch JetSmarter a start-up that allows people across the globe to book trips on a private jet using its mobile app. Russia. Noting that this was the only travel and transportation market that had not gone digital, Petrossov had his A-ha! moment. Customers started accusing JetSmarter of bait and switch. The charges were related to a former business, not JetSmarter. Awarded Forbes 30 Under 30 in Consumer Technology, Petrossov is an entrepreneur by trade and has taken JetSmarter to heights no one would have imagined no one but himself, of course. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. He plays as a right-back for FC Krasnodar. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. In high school, he attempted to start an import-export business for automobile tire rims. CNBC spoke to Sally Horchow, a Los Angeles-based Broadway producer who travels frequently to New York. Sergey Petrossov, a Young Man with a Big Dream: Sergey Petrossov moved to the U.S. as a young boy, and his family finally settled in Florida. JetSmarter still has to deal with inquiries from the FAA. Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. Anthony Pompliano Net Worth Phone Number, House Address, Wiki, Ashley Massengill Net Worth | Bio, Family, Address, Career, Atlas Monroe Net Worth | Age, Height, Weight, Dating And More, Beyonce S Net Worth Phone Number, House Address, Wiki, Blue Ivy Net Worth Phone Number, House Address, Wiki. But forJetSmarterFounder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). Google [x], Rapid Evaluation Program Manager. The partners that we have cover a large number of international destinations, to enable our customers to be able to fly worldwide within as little as six hours from booking their flight. To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. The shuttles were a big success. He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. When youre young, those are the years you can take the most risks. Sergei Andreyevich Petrov ( Russian: ; born 2 January 1991) is a Russian football player. Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. JetSmarter is headquartered in Fort Lauderdale, Florida, and maintains offices in Zurich, Moscow, London, Riyadh, and Dubai. [36], In 2017, The Verge reported that management of JetSmarter offered free flights to its reporters if an article was posted within five days of the flight. Refresh Miami is a 501c3 non-profit with a mission to educate, inspire, connect and grow South Floridas tech and startup ecosystem. The company charters them or books space on them from other companies. Paychecks were delayed four to five weeks. Sergey Petrossov. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. That membership goes for $50,000 a year. I agree to Money's. Your education and upbringing? JetSmarter is not taking the criticism from customers and former employees lying down. We have also announced our series C funding raise of $105 million, at a $1.5 billion pre-money valuation, from existing and new strategic investors. Some flights have security dogs inspecting bags, but many have no security checks at all. In other incidences, passengers and crew members have witnessed passengers using JetSmarter to transport drugs or large amounts of cash. Also included for JetSmarter members are complimentary helicopter services, with free transfers to and from New York area airports. More from Forbes 30 Under 30 - Consumer Technology 2016 List. (Epstein declined to comment.). The company was offering him its "sophisticated membership," which included unlimited, free private jet flights with a companion pass. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Were currently partnered with 800+ carriers across the globe, who work with our team to provide our app users with around 3,200 aircraft and 4,000 free flight hours each month. By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. Sergey Petrossovs solid work ethic and drive to succeed as an entrepreneur has been evident since high school when he founded his first business: a tire rim import/export company for luxury cars. 1,302 likes. [14], On April 10, 2019, Dubai-based Vista Global said it had made an agreement to acquire JetSmarter adding it to its aviation portfolio, which includes VistaJet and XOJET. Now people from all walks of life have started evaluating his merits. But guess what happened when she and other new sophisticated members tried to book flights? The flights Horchow took were a fraction of the cost of other private jet companies. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. ", "JetSmarter faces lawsuits, losses and security questions", https://en.wikipedia.org/w/index.php?title=JetSmarter&oldid=1149578250, Companies based in Fort Lauderdale, Florida, Ridesharing companies of the United States, All Wikipedia articles written in American English, Creative Commons Attribution-ShareAlike License 3.0, Sergey Petrossov (CEO), Gennady Barsky (President). westbourne house school mumsnet,

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