Members who pay $9,000 a year, for instance, can get cheaper deals, whilst travellers can charter an aircraft and share the cost with others who seek the same itinerary. Galvez isn't the only JetSmarter customer with a grievance. Some flights have security dogs inspecting bags, but many have no security checks at all. With JetSmarter, he focuses on how to make air travel more convenient and accessible, but also on how to improve the lifestyles of his members the biggest draw of JetSmarter for a lot of its members is being able to fly privately with other like-minded individuals who place a lot of importance on style and luxury. Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. Members are able to book private jets in a matter of minutes, right from the palm of their hand. I moved to South Florida when I was 11 or 12. That investment gives JetSmarter a valuation of less than $250 million, a plummet of more than 80% from the earlier more than one-billion dollar valuation. 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. [2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation. Author Recent Posts Follow me Nancy Dahlberg 135 following. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. As Galvez told CNBC: "My heart dropped. [37] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000. Tucker Carlsons Ouster From Fox Criticized By Russias Foreign Minister As Curious News, Google At Risk Of Losing Samsung And Apple Phone Deal To Microsoft AI, Do Not Sell or Share My Personal Information, Limit the Use of My Sensitive Personal Information. // ]]> JetSmarters own Safety Audit Committee analyzes the procedures of all primary operators in the JetSmarter program. He jumped at the chance to purchase the longer deal. [35] The company also partnered with Jet Edge and Air Hamburg to cater to its global community of private jet fliers. JetSmarter was losing money hand over fist so it went through three investment rounds to raise cash. An example of data being processed may be a unique identifier stored in a cookie. Meet the CEO of JetSmarter, the Uber of Private Jets | Money More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. It said it would use the money to expand services, including routes and flight frequency.[23]. 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. That membership goes for $50,000 a year. How do you source your planes, staff and pilots? What was your background prior to JetSmarter? We and our partners use cookies to Store and/or access information on a device. The company held champagne filled parties in Miami, Los Angeles, and New York to attract rich new members. That was my first experience working with engineers and I learned with technology how much value you can bring in a short amount of time. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. How do you source your planes, staff and pilots? 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. After paying nearly $90,000 for memberships, they were being told they had to pay more to actually USE their memberships. Mark Zuckerberg. The flights Horchow took were a fraction of the cost of other private jet companies. He has a clear vision for what flying private should be, and he wont stop there. We think about three pillars: how you get there, who you meet and where you go. JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. 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. Members raved about the service, which at the time, gave them all you can fly private jet service for as little as $7,000 a year. So JetSmarter makes empty seats available via its app to anyone looking to jet quickly to their next destination for a price. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. Petrossov was shocked at how out-dated the entire booking processes seemed, and he figured that the whole experience could be streamlined via technology. She flew across the country in a Gulfstream IV 13 times. And so JetSmarter came to be, though not easily. 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. Youd have only two to three people on an average airplane. Bachelor of Arts/Science, University of Florida, Russias top diplomat said Carlsons departure from Fox means the wealth of views in the American information space has suffered.. // < ! The company was headquartered in Fort Lauderdale, Florida, United States. [39] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. After paying to join, JetSmarter members can pay to fly on pre-scheduled flights between popular destinations or book their own aircraft and let members claim seats. Back in the early days, a JetSmarter membership also included free helicopter service to its airports and catering on the flights. As they grew, JetSmarter began offering own shuttle services it would charter a plane on a popular route and fill it with JetSmarter members. Download JetSmarter. [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. There was no digital form in accessing it. This is just a sample. People are becoming more and more interested in Sergey Petrossov because of how much money he makes. He filed a lawsuit against JetSmarter and its salesperson. Strategies for Business Growth and Productivity. One day in 2009, he and some of his friends were given the opportunity to fly on a private plane, but the only way to book that flight was by calling the company directly and talking to a dispatcher, who then sent them a physical invoice to sign and fax back to the company. 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. However, if the person behind the product, and the product itself, has a relatable story and shows potential customers that it offers value, the likelihood of success is higher. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. [40], In January 2019, CNBC aired an investigative report on JetSmarter, titled "Tailspin", stating that "JetSmarter tried to be the Uber of private jets, now it faces lawsuits, losses and security questions". Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. Sergey Petrossov Founder JetSmarter (Acquired) | CEO | Board Member | Entrepreneur | Vista Global Executive Miami-Fort Lauderdale Area 5K followers 500+ connections Join to view profile Vista. After innovation, finding the best way to connect with the audience or the market is the surest way to success. There are approximately 22,000 private flights every single day in the United States, and one-third of them are empty. Its third round in 2016 raised $105 million and put the valuation of the startup at $1.5 billion. It supported chat for audio and video for website customer service. 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. If a friend says JetSmarter is the best, the trust factor goes up. The charges were related to a former business, not JetSmarter. Sergey Petrossov, Big Dreams Lead to Great Success 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 Born in Moscow, Petrossov relocated to the United States with his family at the age of four. Many companies featured on Money advertise with us. She was told she could get three years of sophisticated membership for $87,092 a discount from the already discounted $97,500. 10.5K followers. Get an inside vue on the latest in luxury. 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. In high school, he attempted to start an import-export business for automobile tire rims. The flight eventually continued to New York. . 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. Petrossov said then he started working on the idea in 2012 as a side project and since then it has been one long hectic ride. Over the years, he also said he hoped to take JetSmarter public. In 2016 it started eliminating the free helicopter service as well as catering on the flights. It was a challenging way to get here. 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. In fact, it is making money on some flights. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. Serge y Petrossov is the founder and CEO of JetSmarter Today, there are about 8,000 JetSmarter members. What was your vision? Asia Pacific +65 6212 1000. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. 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. 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. Thanks for reading! However, one constant is that he is always looking for ways to optimize the product through innovation, anticipating how his clients needs will evolve and how to address them quickly and effectively. Dont give up, he says. 2023 Forbes Media LLC. The JetSmarter app is available for iOS and Android download in the iTunes store or Google Play store. And, if they want, they can book a fully private flight, which comes with a higher cost. The business news channel also published a letter from JetSmarter's general counsel attempting to quash its investigation. There are also concerns over security. For more information, read, How to Switch Careers Even if You Think It's Impossible, Your Resume Probably Needs a Pandemic Makeover. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. Petrossov knows this and is always trying to think of ways to improve areas that are lacking in technology. 2023 Celebrity Net Worth / All Rights Reserved. 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. If you have a real, deep drive, no matter how much youre knocked down, you can always get your head up, he says of his career. One of the most essential aspects that move a business forward is the errors that happen along the way. 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. Private jet travel is more accessible than people think. We bootstrapped a small tech team in 2012, built an app, met with industry people, raised a little bit of money, and launched to the public in 2013. Sergei Andreyevich Petrov ( Russian: ; born 2 January 1991) is a Russian football player. Learn more about how we make money. 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. Mostly, JetSmarter will be remembered for offering an all-you-can-fly buffet of seats on scheduled private flights for under $10,000 annually, less than a single traditional charter flight. JetSmarter, the once high-flying South Florida unicorn, is being acquired. I agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. Sergey Petrossov, Jetsmarter Inc: Profile and Biography Language links are at the top of the page across from the title. 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. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. We think about three pillars: how you get there, who you meet and where you go. ", "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). Sergey Petrossov. Noting that this was the only travel and transportation market that had not gone digital, Petrossov had his A-ha! moment. More from Forbes 30 Under 30 - Consumer Technology 2016 List. Theres no effect on the business., There has, however, also been a management shuffle among the chief financial officers over the past year. Rick Scott joined JetSmarter CEO Sergey Petrossov to cut the ribbon on the company's new multimillion-dollar headquarters office in downtown Fort Lauderdale. Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. [28] Adding to its services, the company offered helicopter transfers in select cities. Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. 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. This story was updated throughout the day. And down the road, we want to own premium business travel in the United States, he says. In early 2016, it launched flights within Europe. Instead, his focus is on creating a world-class, hospitality-driven experience. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. The cost was high., Private jets often sit around empty, further driving up prices. After his first exposure to private jet travel when a fellow business owner took him aboard one, Petrossov noticed surprising inefficiencies. In response to positive reviews and the growing popularity of the mobile marketplace, Petrossov made the decision to develop what would come to be known as JetSmarter into a full-fledged business. Submit a correction suggestion and help us fix it! He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. JetSmarter was founded by Moscow-born Sergey Petrossov, who moved to South Florida as a teen, graduated from the University of Florida and launched JetSmarter in 2012 when he was in his early 20s. He initially resided in California and later moved to Florida, where he continues to live today. Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. We have to boil that down to them.. But its not just about the brand. The company had booths and VIP lounges at yacht shows, art fairs, and other places wealthy people gathered en masse. Charter a flight with the tap of an app - Sun Sentinel JetSmarter was a corporation and mobile application for private jet users. JetSmarter CEO Sergey Petrossov Says Ex-President's Arrest Has 'No Sergey Petrossov is a successful businessman and entrepreneur. 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. We used this funding to expand our JetShuttle offerings and continue to expand globally. JetSmarter declined to comment on CNBC's inquiries, but said in a statement that "changes to our member services and benefits were within the rights of our membership agreement." In March 2013, JetSmarter launched globally. Empty-leg flight deals, or repositioning flights. Many customers reported that they had planes entirely to themselves. Sergey Petrossov - Board Advisor @ Vista Global - CrunchBase With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. Then different membership tiers debuted. Its been a wild few months for Sergey Petrossov, the 28-year-old founder and CEO of JetSmarter, which hopes to be the Uber of private jet service and has gained high-profile investors like the Saudi Royal Family and Jay Z. Instead it acts as a middleman between private jets and passengers looking for seats. Unique services offered by JetSmarter include the option of booking free seats on scheduled shuttle routes or creating shuttles between certain cities, free flights to new destinations daily from members favorite cities and real-time private jet booking with guaranteed availability in more than 170 countries. 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. 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. We spend a lot of time asking members to spread the word. Members who pay $9,000 a year, for instance, can get cheaper deals, whilst travellers can charter an aircraft and share the cost with others who seek the same itinerary. JetSmarter aggregates. His advice to millennials like him who want to create companies is to be bold sooner rather than later. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Sergey Petrossov | New York Post The hardest thing for a disruptive company is getting people to try it out. 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. Galvez is no longer using his $97,500 JetSmarter membership. JetSmarter still has to deal with inquiries from the FAA. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. Like Uber, Lyft, and AirBnb, who don't own the cars or properties they peddle, JetSmarter does not own the planes. I wasnt the founder but since I got involved early they called me a co-founder. Petrossov was motivated to create companies in his teens JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. You have this multibillion-dollar industry that was completely analogue, he says. CNBC spoke to Joann Bachewicz from Lansing, Illinois. Its like a country club that follows you around, Petrossov said. Take as much risk as you can when youre young. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. We spend a lot of time asking members to spread the word. Jet Life: Sergey Petrossov - LinkedIn Sergei Petrov - Wikipedia 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. The aim of the mobile app is to make travel fun, easy and convenient for our members. https://money.com/jetsmarter-uber-private-jets-ceo/. This button displays the currently selected search type. We are continually looking at ways and means to expand our offerings within the region, and globally. Founder and CEO, JetSmarter Boca Raton, Florida About Sergey Petrossov Sergey wants to change the aviation business by making private flights accessible to the masses. Business growth largely depends on a combination of innovation and marketing. The plane made an emergency landing in Nebraska and Paola was removed from the plane and arrested. Work stopped on Bezos' megamansion as his net worth drops by $57B The letter accused CNBC of "tortuously interfering with JetSmarter's contractual relationships.". By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. Constant innovation hinges on always anticipating the clients next move and tendencies and catering to them. 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.. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. 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. Education After graduating from high school, Petrossov studied finance at the University of Florida. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. He decided to organize planes in a digital fashion with high utilization and a lower cost of entry.. 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. www.vistaglobal.com. Trial and error drive progress and are at the heart of innovation. 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. Support. Manage Settings The planes werent being utilized enough. . It is expected to close in the second quarter. this link is to an external site that may or may not meet accessibility guidelines. [7][8] In August 2012, the beta version was launched and tested among a closed group of private aviation users. [31][32] It was also investing a ton of money on marketing and events. Yep, JetSmarter had changed its terms and conditions again. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. Also included for JetSmarter members are complimentary helicopter services, with free transfers to and from New York area airports. A G4 costs more than $6,000 per hour to fly. Our goal is to one day make all air travel private. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. What are JetSmarters expansion plans for the future? From 2007 to 2015, he served as a State Duma deputy from "Just Russia" (though he never actually joined the . So far, there is no announcement on the JetSmarter website. Dorado, PR 00646, Metro Office Park JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. She was told the membership included free flights under three and a half hours, a discount on longer flights, and the potential to bring up to three guests. [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.
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sergey petrossov net worth