Petrossov declined to say when JetSmarter would turn a profit. JetSmarter was the first "flying unicorn," with a valuation of more than $1 billion. This story was updated throughout the day. ", "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). Some flights have security dogs inspecting bags, but many have no security checks at all. He spends some days speaking with stakeholders while other days are spent meeting clients demands. JetSmarter has not been without its hiccups. Its no longer about the brand, marketing and brand association. 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.. In 2012, I spoke to the carriers I had established relationships with and discussed how large of an impact an app to charter a private plane would have on the industry. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. Take as much risk as you can when youre young. Sergey Brin - Forbes The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. And so JetSmarter came to be, though not easily. JetSmarter is established on the collaboration between technology and luxury by management and advisory teams with over 100 years of experience in technology, private air travel, and logistics. Americas +1 212 318 2000. Founder Sergey Petrossov said in the brokerage industry, "there's very little transparency." With the JetSmarter app, consumers can see the prices anywhere from $5,000 to $600,000 for a . Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. The question was: How was JetSmarter making ANY money off their flights? Without trial, there is no error, and without error, there is no improvement. We spend a lot of time asking members to spread the word. 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. The problem is, he was the key person dealing with the company's investors. . He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. Petrossov's biggest success to date, however . By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. JetSmarter customers can charter a plane buy buying a minimum number of seats usually three or four and then JetSmarter sells the rest of the seats to other customers. While attending the University of Florida, he became involved with his first tech start-up, which lit a passion in him. The company also said it was providing integration via SAP Concur to attract more corporate travel business. The added costs of the flights made it too expensive for him. // < ! All while avoiding the hassle and headache of airport security screenings. Sergey Petrossov, Advisor, XO Private jet travel is more accessible than people think. The company has a trail of angry customers and at least 13 lawsuits. 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. For the record, JetSmarter's membership agreement states that the company can "change, suspend, or terminate" services or benefits at any time. 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. I agree to Money's. 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. 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. He filed a lawsuit against JetSmarter and its salesperson. There is no such thing as a typical day for Petrossov. You can update your choices at any time in your settings. 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. Just go do it, he says. Refresh Miami is a 501c3 non-profit with a mission to educate, inspire, connect and grow South Floridas tech and startup ecosystem. Jet Life: Sergey Petrossov - LinkedIn [30], JetSmarter partnered with various air carriers that span the range of the private charter industry. 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 Petrov, 32, from Russia FK Krasnodar, since 2012 Right-Back Market value: 1.00m * Jan 2, 1991 in St. Petersburg, UdSSR Members are able to book private jets in a matter of minutes, right from the palm of their hand. With JetSmarter, youll no longer have to go through the TSA lines with unreasonable wait times, or have to deal with uncomfortable airplane seats well get you to your destination with comfort and ease. Then, in early 2017, Gennady Barsky, JetSmarter's president was arrested and charged with grand theft. The aim of the mobile app is to make travel fun, easy and convenient for our members. In December, it garnered a giant $105 million round of financing that pushed the private companys valuation to $1.5 billion. (Photo by Gustavo Caballero/Getty Images for DuJour). I dont know. Sergey Petrossov. His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. The company had booths and VIP lounges at yacht shows, art fairs, and other places wealthy people gathered en masse. Petrossov was motivated to create companies in his teens [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. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. 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. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. By enabling guests to travel to over 170 countries worldwide, JetSmarter is often referred to as a country club in the air.. Members are able to book private jets in a matter of minutes, right from the palm of their hand. JetSmarter, once a high-flying unicorn, is being acquired He noted that the company had recently added access to 8,000 luxury homes (and villas) to its system. 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. Support. In fact, it is making money on some flights. In 2004, Petrov stepped down as president of his company to take up politics. . How To Remove Items From Your Credit Report, How To Boost Your Credit Card Approval Odds, Best Pet Insurance Companies of April 2023, Drivers May Soon Get More Money Back From Car Insurance Companies, Non-Fungible Frenzy: Why NFTs Are Suddenly Everywhere. And, if they want, they can book a fully private flight, which comes with a higher cost. Were still in the early days.. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. This story was updated throughout the day. [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. It supported chat for audio and video for website customer service. Jetsmarter, The Uber For Private Jets Is Facing Lawsuits And He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? The company had no comment on The Verge reporting or Barsky's exit for this story. Membership swelled to about 10,000. Now people from all walks of life have started evaluating his merits. 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. What are JetSmarters expansion plans for the future? Still, despite JetSmarter's aggressive legal bullying, a number of former members have joined a class action lawsuit against the company. Youd have only two to three people on an average airplane. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. The first beta version of the app was released in August 2012 to a closed group of private jet travelers. Its no longer about the brand, marketing and brand association. Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. See a Bloomberg news video here. Petrossov is most known for founding JetSmarter, a technology company Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. JetSmarter - Wikipedia Also, today, in the tech age, luxury is transcending past brand to experience. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. For Petrossov, his vision is one that goes beyond mere name recognition and service. This is just a sample. We think about three pillars: how you get there, who you meet and where you go. According to Petrossov, JetSmarter has been downloaded more than 300,000 times since its launch in March 2013, and while he wasn't willing to share very many figures relating to the business, he. Thank you for subscribing to Elite Traveler. There are approximately 22,000 private flights every single day in the United States, and one-third of them are empty. Today, there are about 8,000 JetSmarter members. Its third round in 2016 raised $105 million and put the valuation of the startup at $1.5 billion. She flew across the country in a Gulfstream IV 13 times. Lets meet them, AirOps raises $7M to bring the power of AI to the workplace, Tech Talent Coalition workgroup aims to expand training and hiring opportunities for our local diverse talent, Say goodbye to in-person tours: Check out a home for sale from the comfort of metaverse startup Propyverse, At packed Venture Miami Tech Hiring Fair, breadth and depth of Miami movement on full display. 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. Instead, his focus is on creating a world-class, hospitality-driven experience. The consent submitted will only be used for data processing originating from this website. Instead, his focus is on creating a world-class, hospitality-driven experience. JetSmarter, the once high-flying South Florida unicorn, is being acquired. Born in Moscow, Petrossov relocated to the United States with his family at the age of four. It required literally calling to book and signing papers. After collaborating with hundreds of vendors and recruiting a team with a combined experience of more than 100 years in private air travel, the JetSmarter app was officially released in March 2013. 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. As a renowned principal, Sergey is always finding manners to innovate different industries. 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. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. I went to the University of Florida and studied finance. 15 local leaders selected as GET Cities Champions for gender equity in tech. His goal has always been to have in own company and while still in college, he . I think some people just have drive and passion for what theyre doing. There are also concerns over security. 1,302 likes. And let's not forget Billy McFarland and the Fyre Festival debacle. Utilizing his previous experience co-founding two IT companies and serving as a board advisor to a private jet operator based in South Florida, Petrossov created a user-friendly app allowing travelers to order flights Sergey Petrossov is thus an ideal successful young entrepreneur. Customers started accusing JetSmarter of bait and switch. 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? What's next? In high school, he attempted to start an import-export business for automobile tire rims. You have this multibillion-dollar industry that was completely analogue, he says. Our goal is to one day make all air travel private. The 12 wealthiest people on the planet grew $36 . It said it would use the money to expand services, including routes and flight frequency.[23]. According to Petrossov, JetSmarter has been downloaded more than 300,000 times since its launch in March 2013, and while he wasn't willing to share very many figures relating to the business, he . Im taking on a little extra responsibility, he said. 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. 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. Its like a country club that follows you around, Petrossov said. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. Our average user visits JetSmarter 12 times daily. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. JetSmarter still has to deal with inquiries from the FAA. The startup recently announced it had raised $20 million in funding from the Saudi royal family and celebrities such as Jay-Z. Sergey Petrossov - Board Advisor @ Vista Global - CrunchBase The flight eventually continued to New York. We are continually looking at ways and means to expand our offerings within the region, and globally. More from Forbes 30 Under 30 - Consumer Technology 2016 List. This tailored approach seems to be working. EMEA +44 20 7330 7500. [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. Today, the company is mired in lawsuits and worth about a fifth of that $1.5 billion. A year later, JetSmarter needed more cash. In April 2018, JetSmarter was valued at $1.5 billion and had 15,000 subscribers who paid a minimum of $5,000 a year to book flights and share seats on flights on private jets via the company's app. The catch-22 was that the more members the company signed up, the faster they burned through their investment money. 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.
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