In August 2012, I made it a reality and created the beta version of JetSmarter, sharing it with an exclusive group of industry experts and frequent private jet users. I went to the University of Florida and studied finance. JetSmarter went on to raise more than a million dollars in funding, grew to a company with 260 employees and reportedly hit a unicorn valuation of $1.6 billion about two years ago, with backers like rapper Jay-Z and the Saudi royals. Learn more in our Cookie Policy. Contact me at ndahlbergbiz@gmail.com. The company has also been known to sue journalists for writing articles critical of the company if they do not take down the article. After his first exposure to private jet travel when a fellow business owner took him aboard one, Petrossov noticed surprising inefficiencies. The company had no comment on The Verge reporting or Barsky's exit for this story. There are lots of hard times, but I found that, no matter how difficult something is, you should keep falling, and if you keep getting back up and move forward, its virtually impossible to fail unless youre physically incapacitated., That doesnt just apply to him, he adds, but among the great entrepreneurs, it comes back to perseverance. What are the main differences between JetSmarter and its close competitors? Whats your marketing strategy? This tailored approach seems to be working. EMEA +44 20 7330 7500. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. The FBI is also investigating JetSmarter, specifically about the business and sources of cash, drug transportation, and the cash customers transported on JetSmarter flights. 15 local leaders selected as GET Cities Champions for gender equity in tech. Petrossov declined to divulge revenues, but if 8,000 members are paying $15,000 a year that would mean $120 million in annual membership fees alone. 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. Now, Petrossov is the founder and CEO of JetSmarter, an app-based mobile community made to help people to travel by private jet for a fraction of the cost and like meeting like-minded people. This page was last edited on 13 April 2023, at 03:18. 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. In 2016 it started eliminating the free helicopter service as well as catering on the flights. We think about three pillars: how you get there, who you meet and where you go. JetSmarters starting point is $17,500, so theyve essentially lowered the entry point for private aviation, allowing many people with a lower net worth to fly privately when they never could before. Vista Global, owner of VistaJet and XOJET, will immediately benefit from JetSmarters industry-leading technology platform that will ease the booking process for VistaJet customers, according to a Forbes report. The added costs of the flights made it too expensive for him. Since JetSmarters launch in 2013, the company has focused on making the booking process as easy as possible JetSmarter is often compared with Uber for how easy it is to book and democratizing private aviation by making it more affordable and accessible. 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. Manage Settings 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? If a friend says JetSmarter is the best, the trust factor goes up. During his research, he also discovered that about 70 percent of all private jets were empty and the majority of their flight hours were spent traveling to pick up the next passenger, not flying the passenger themselves. Through the investments, the organization is worth $1.5 billion. What was your vision for the mobile app? I dont know. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. 1,302 likes. National team caps and goals, correct as of 19 November 2019. 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. While many 20-somethings stick it out paying their dues in corporate jobs, Petrossov has enthusiastically moved from one uncertain endeavor to another. Its not always about price, he said, noting that the company currently has 8,000 members and transports 20,000 people a month. 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. And, if they want, they can book a fully private flight, which comes with a higher cost. We have to do that for the traditional private flyer whos not used to sharing an airplane. Not just by the luxury but by how complicated and archaic the process of booking it could be. It is expected to close in the second quarter. He believes in the potential growth of the industry and apparently so do his investors, including the likes of Jay-Z and the Saudi Royal Family. . The aim of the mobile app is to make travel fun, easy and convenient for our members. This is just a sample. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. Thanks for reading! All Rights Reserved. He spends some days speaking with stakeholders while other days are spent meeting clients demands. JetSmarter set out to revolutionize jet travel. But guess what happened when she and other new sophisticated members tried to book flights? Some flights have security dogs inspecting bags, but many have no security checks at all. I am a writer and editor with extensive media experience and a passion for journalism and serving the community. Just go do it, he says. Shocked that Samsung has been considering switching its default phone search to Microsofts Bing, with Apple's contract up for renewal as well, Google is pulling out all the stops for Google I/O next month with new chat features for its traditional search function, while keeping Bard at bay. These days, JetSmarter no longer sells memberships. Download JetSmarter. [37] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. Barsky had been the companys CFO before being promoted to president in January 2016, and his replacement as CFO, Joey Epstein, stayed just 10 months, before departing in October, according to his LinkedIn profile. The flights Horchow took were a fraction of the cost of other private jet companies. He decided to organize planes in a digital fashion with high utilization and a lower cost of entry.. The Fort Lauderdale, Florida based company opened offices in London, Zurich, Moscow, Dubai, and Saudi Arabia. JetSmarters goal is also to utilize those passenger-free flight hours and fill them. Your education and upbringing? Try This App", "Empty Leg Flights Make Private Jet Travel More Affordable", "JetSmarter brings app-based private charter service in Chicago", "These Two Aviation Companies Are Redefining Private Jet Travel", "EXCLUSIVE: JetSmarter's evolution is bringing branded airplanes, aircraft management, new single seat, empty leg and charter pricing, plus a new COO", "JetSmarter partners with GlobeAir enabling international expansion", "Charter a flight with the tap of an app", "Pernod Ricard and JetSmarter Announce One-Of-A-Kind Partnership", "Vertis Inks ME Partnership with JetSmarter", "SportStar Relocation Announces Partnership with JetSmarter", "The Fastest-Growing Private Jet Company In The World", "JetSmarter Tries to Extort Journalists for Positive Coverage", "This Startup Made Journalists Agree To Write Positive Reviews Or Pay Them $2,000", "Kim Kardashian and Petra Nemcova are part of a new $2 million lawsuit against JetSmarter", "UPDATED (Second Update): JetSmarter lawsuit referred to arbitration. The charges were related to a former business, not JetSmarter. Back in the early days, a JetSmarter membership also included free helicopter service to its airports and catering on the flights. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). Also, today, in the tech age, luxury is transcending past brand to experience. What are JetSmarters expansion plans for the future? With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. Petrossov said that he hopes to expand internationally JetSmarter has offices in London, Zurich and Dubai and to add new services, from lodging to restaurants, that it can serve up to its well-heeled clientele. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. It was also investing a ton of money on marketing and events. Yep, JetSmarter had changed its terms and conditions again. Sergey Petrossov is a serial entrepreneur and successful businessman. 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. [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. If you enjoy our content, support us by becoming a paid subscriber. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. In September 2016, then-Florida Gov. Members are able to book private jets in a matter of minutes, right from the palm of their hand. He put its revenue in the hundreds of millions, which he hops to double in the next two years. Galvez isn't the only JetSmarter customer with a grievance. 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. Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. In February of 2017, the companys president Edward Barsky resigned after he was arrested on charges of grand theft, although Petrossov said the incident was not related to his work for JetSmarter. Sergey Brin Cofounder and board member, Alphabet $88.5B Real Time Net Worth as of 4/29/23 #12 in the world today Photo by Kelly Sullivan/Getty Images for Breakthrough Prize About Sergey. Codispoti said by email that he joined JetSmarter as CFO in October. The hardest thing for a disruptive company is getting people to try it out. His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. Sergei Andreyevich Petrov ( Russian: ; born 2 January 1991) is a Russian football player. In August 2012, I made it a reality and created the beta version of JetSmarter, sharing it with an exclusive group of industry experts and frequent private jet users. But the app still requires convincing. 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." [2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation. These airplanes are severely under-utilized by flying only 200 hours a year when they could be flying 1,200 hours. His ultimate goal is to create a lifestyle brand where members can book all types of travel through JetSmarter and gain access to special experiences that the company can curate. And let's not forget Billy McFarland and the Fyre Festival debacle. And down the road, we want to own premium business travel in the United States, he says. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. We used this funding to expand our JetShuttle offerings and continue to expand globally. This story was updated throughout the day. At other times, a company representative would tell customers that their hands were tied because the changes had been mandated by the company's investors. The company has a trail of angry customers and at least 13 lawsuits. 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. View the profiles of professionals named "Sergey Petrossov" on LinkedIn. 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. If a friend says JetSmarter is the best, the trust factor goes up. [CDATA[ brightcove.createExperiences(); His goal has always been to have in own company and while still in college, he . Before launching JetSmarter, Petrossov, who was named as one of Forbes 30-under-30 and one of South Floridas Top Working Professionals, co-founded two IT projects: an online chat system for website customer service and a distance-learning platform for Russian-speaking educational institutions. Additionally, JetSmarter partners exclusively with operators that carry a Wyvern Wingman or ARG/US Gold or Platinum safety rating, viewable in the app along with each aircrafts liability insurance. Get an inside vue on the latest in luxury. In March 2013, JetSmarter launched globally. As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. 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. 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. In the private aviation industry, many are familiar with jet cards or fractional jet ownership, where a light to mid-sized jet card can cost one anywhere from $130,000 to $150,000 a year for 25 hours worth of flying. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. The current CFO is Edward Codispoti, who had previously been chief financial officer at TradeStation. In early 2016, it launched flights within Europe. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. Its like a country club that follows you around, Petrossov said. It is this small switch in outlook that the customers needs are paramount, that can make a big difference. What was your background prior to JetSmarter? Steven Kreit, a partner at accounting firm EisnerAmper who is in charge of its New York commercial audit and assurance practice, said they should, especially at a unicorn-sized company. As they grew, JetSmarter began offering own shuttle services it would charter a plane on a popular route and fill it with JetSmarter members. Posts Videos Tagged. I wasnt the founder but since I got involved early they called me a co-founder. Its about personalization and what I call predictive hospitality. 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? The plane made an emergency landing in Nebraska and Paola was removed from the plane and arrested. JetSmarter is not taking the criticism from customers and former employees lying down. The membership agreements customers signed barred them from making any negative comments about the company or its executives in any way something that is very unusual in the aviation industry. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. The company was headquartered in Fort Lauderdale, Florida, United States. I wasnt the founder but since I got involved early they called me a co-founder. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. The business is capital-intensive, so JetSmarter, based in Fort Lauaderdale, Fla, had to secure major funding -- including a $105 million round of financing raised last year. Customers started accusing JetSmarter of bait and switch. He jumped at the chance to purchase the longer deal. JetSmarter aggregates. As a renowned principal, Sergey is always finding manners to innovate different industries. In March 2013, JetSmarter launched globally. JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. 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. We used this funding to expand our JetShuttle offerings and continue to expand globally. The company is still not profitable but it isn't losing as much money on flights. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. Strategies for Business Growth and Productivity. [CDATA[ Private jet travel is more accessible than people think. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. [10][11] JetSmarter had offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale. Today, there are about 8,000 JetSmarter members. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. The planes werent being utilized enough. Through with the brick-and-mortar approach to booking private aircrafts, Moscow native Sergey Petrossov decided to take matters into his own tech-savvy hands. I believe the future of travel is going to transcend the language of commodity.. Petrossov said that he had added the role of president at the Fort Lauderdale-based companies to his duties as chief executive since Barskys departure.
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