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. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. 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. What. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. But that has raised concerns for some of JetSmarter's customers. 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. Contact me at [email protected]. That means a one way trip from New York to Los Angeles would cost more than $30,000. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. I love hosting this blog for Refresh Miami and we aim to be the go-to site for South Florida startup and tech news, features and views. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: The current CFO is Edward Codispoti, who had previously been chief financial officer at TradeStation. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. The aim of the mobile app is to make travel fun, easy and convenient for our members. It is a misconception that privatization is for the wealthiest one percent. What was your vision for the mobile app? Whats your marketing strategy? Sources told the New York Post in February that the startup was in rescue talks., Our vision is to create this travel and lifestyle community and to deliver an end-to-end experience for how you get there, who you meet and where you go, Petrossov said in a 2017 interview with me. The idea was so simple it seemed impossible that someone hadn't thought about it before. By this time, however, he no longer practiced business. I knew I wanted to go in technology, Petrossov says. Petrossov, who was born in Russia but moved to Florida at a young age with his family, struggles to define what has made him hustle through his 20s. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. Asia Pacific +65 6212 1000. It turned out that flight wasn't free as promised. We think about three pillars: how you get there, who you meet and where you go. Over the years, JetSmarter has attracted investments from Jay-Z, the Saudi Royal family, and execs from Twitter and Goldman Sachs. (1) *Club domestic league appearances and goals, correct as of 23 April 2023. 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. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. While many 20-somethings stick it out paying their dues in corporate jobs, Petrossov has enthusiastically moved from one uncertain endeavor to another. The hardest thing for a disruptive company is getting people to try it out. Thank you for subscribing to Elite Traveler. He plays as a right-back for FC Krasnodar. Also included for JetSmarter members are complimentary helicopter services, with free transfers to and from New York area airports. What was your background prior to JetSmarter? What's next? You have this multibillion-dollar industry that was completely analogue, he says. 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. The main reason I was interested in Torossian's employment as a PR agent for Turkey is that there was a similar situation with Barry Zorthian, who worked from Oct. 1980 to February 1984 for the lobbying firm of Gray and Co., hired . [39] Opinions are our own, but compensation and in-depth research determine where and how companies may appear. The company has also been known to sue journalists for writing articles critical of the company if they do not take down the article. The company has a trail of angry customers and at least 13 lawsuits. Our average user visits JetSmarter 12 times daily. Take as much risk as you can when youre young. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. 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.. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. We used this funding to expand our JetShuttle offerings and continue to expand globally. The company also said it was providing integration via SAP Concur to attract more corporate travel business. A few weeks later, Galvez tried to book a JetSmarter flight. After paying nearly $90,000 for memberships, they were being told they had to pay more to actually USE their memberships. The charges were related to a former business, not JetSmarter. A few friends had introduced him to private jets, and he started asking questions, as he puts it, about how the heck this industry was run. His big idea was to apply the Uber model to private jets, which spent too much time grounded or flying empty. How did the journey with JetSmarter begin? Lots 81-82 Street C Our goal is to one day make all air travel private. It supported chat for audio and video for website customer service. View the profiles of professionals named "Sergey Petrossov" on LinkedIn. I dont know. 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." Membership swelled to about 10,000. Petrossov launched the JetSmarter app back in 2013 and never looked back, its even been referred to by some as Uber for private jets, moving more passengers annually than anyone in the industry. The flight eventually continued to New York. 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. 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. Elizabeth Holmes set out to revolutionize blood testing with Theranos. [20][21][22], In August 2017, JetSmarter said it had raised an undisclosed amount of institutional capital from Clearlake Capital, Leucadia National Corporation and existing investors. Instead it acts as a middleman between private jets and passengers looking for seats. 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. Even if that cost is divided by eight to 10 passengers, JetSmarter was losing money. You heard it here first. 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. 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. Thats a shift. JetSmarter was a corporation and mobile application for private jet users. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. If a friend says JetSmarter is the best, the trust factor goes up. Thanks for reading! Galvez is no longer using his $97,500 JetSmarter membership. Sergey wants to change the aviation business by making private flights accessible to the masses. Customers started accusing JetSmarter of bait and switch. He noted that the company had recently added access to 8,000 luxury homes (and villas) to its system. Connect with Sergey Petrossov: Twitter | Facebook | LinkedIn | Instagram | YouTube, A weekly download of the latest product launches, technology news, innovations in medicine, and more, about 70 percent of all private jets were empty. Often called " Uber " for private air travel, JetSmarter enables people to book. What are the main differences between JetSmarter and its close competitors? Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Then, last month, its president, Edward Gennady Barsky, resigned his post after being arrested in Florida on February 16 on charges of grand theft by embezzlement, according to the Broward County Sheriffs Office booking report. Serge y Petrossov is the founder and CEO of JetSmarter It's 30-year-old founder is scrambling to explain himself. Jay-Z's Private Jet Startup "JetSmarter" Just Raised $105 Million In Series C Funding, Jay-Z And Saudi Royalty Invest In 'Uber For Private Jets' App. He has a clear vision for what flying private should be, and he wont stop there. We just launched within the app an events and experiences section that allows members to book curated point-to-point experiences that cant be found elsewhere. The business news channel also published a letter from JetSmarter's general counsel attempting to quash its investigation. Like Uber, Lyft, and AirBnb, who don't own the cars or properties they peddle, JetSmarter does not own the planes. Save my name, email, and website in this browser for the next time I comment. The shuttles were a big success. So JetSmarter makes empty seats available via its app to anyone looking to jet quickly to their next destination for a price. If a friend says JetSmarter is the best, the trust factor goes up. He filed a lawsuit against JetSmarter and its salesperson. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. Sergey Petrossov is a successful businessman and entrepreneur. 2023 Celebrity Net Worth / All Rights Reserved. Sergei Andreyevich Petrov ( Russian: ; born 2 January 1991) is a Russian football player. Petrossov knows this and is always trying to think of ways to improve areas that are lacking in technology. JetSmarter has not been without its hiccups. 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. 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. I fly three or four times a month, usually three domestic flights and one international flight, said Petrossov. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. 10.5K followers. These airplanes are severely under-utilized by flying only 200 hours a year when they could be flying 1,200 hours. Sergey Petrossov Young Economics & Finance Graduate With Marketing Experience Interested In Data Analytics Field Published Jun 28, 2020 + Follow Do you feel like pulling your hair out because you . More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. Instead, his focus is on creating a world-class, hospitality-driven experience. As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. Yep, JetSmarter had changed its terms and conditions again. National team caps and goals, correct as of 19 November 2019. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. www.vistaglobal.com. If you enjoy our content, support us by becoming a paid subscriber. He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California. JetSmarter set out to revolutionize jet travel. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? 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. 7 calle 1, Suite 204 Members also have access to free last-minute flights on empty legs. [CDATA[ brightcove.createExperiences(); 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. Then the company started charging members extra money for longer flights. 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. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Sergey Petrossov. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. After innovation, finding the best way to connect with the audience or the market is the surest way to success. Sergey Petrossov. One of the most essential aspects that move a business forward is the errors that happen along the way. For the record, JetSmarter's membership agreement states that the company can "change, suspend, or terminate" services or benefits at any time. Oh, and he also didn't get the guest pass or any of the other benefits he was promised when he forked over that $97,500 to JetSmarter. According to a recent investigation by Forbes and Business Insider, Sergey Petrossov estimated net worth is more than a couple of million USD, according to the publication. 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. 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. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. Sergey Petrossov. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. Required fields are marked *. He decided to organize planes in a digital fashion with high utilization and a lower cost of entry.. It couldn't even meet payroll. By enabling guests to travel to over 170 countries worldwide, JetSmarter is often referred to as a country club in the air.. 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. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? [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. JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. He is always looking for ways to streamline processes and use technology to make something better and easier, which he has succeeded at doing with JetSmarter. In March 2013, JetSmarter launched globally. These days, JetSmarter no longer sells memberships. 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. In September 2016, then-Florida Gov. Mark Zuckerberg. The private aviation industry is highly inefficient, and Petrossov has built JetSmarter to bring efficiency and a younger customer-base in, ushering the industry into the 21st century. That membership goes for $50,000 a year. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. I moved to South Florida when I was 11 or 12. Sergey Petrossov launched JetSmarter, the Uber for private jet travel in 2013. We have to boil that down to them.. JetSmarter, the once high-flying South Florida unicorn, is being acquired. 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. Were still in the early days.. All while avoiding the hassle and headache of airport security screenings. Offers may be subject to change without notice. In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. Thats the most important thing for entrepreneurs. The aim of the mobile app is to make travel fun, easy and convenient for our members. 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. A G4 costs more than $6,000 per hour to fly. Members are able to book private jets in a matter of minutes, right from the palm of their hand. Its third round in 2016 raised $105 million and put the valuation of the startup at $1.5 billion. 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. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. Russia. 1,302 likes. 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. 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. Its like a country club that follows you around, Petrossov said. Its not always about price, he said, noting that the company currently has 8,000 members and transports 20,000 people a month. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. The cost was high., Private jets often sit around empty, further driving up prices. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. This story was updated throughout the day. 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. Our partners can use the same app as our customers to manage their inventory in real-time from any mobile device, and fill their flights instantly. Exclusively featured by VUE Magazine (vuenj.com). When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. Rick Scott joined JetSmarter CEO Sergey Petrossov to cut the ribbon on the company's new multimillion-dollar headquarters office in downtown Fort Lauderdale. Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. 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 . JetSmarter aggregates. EMEA +44 20 7330 7500. 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. Refresh Miami is a 501c3 non-profit with a mission to educate, inspire, connect and grow South Floridas tech and startup ecosystem. . The company was offering him its "sophisticated membership," which included unlimited, free private jet flights with a companion pass. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. I agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. I moved to South Florida when I was 11 or 12. this link is to an external site that may or may not meet accessibility guidelines. Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. [29], In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. One of the benefits to travel by private jet is skipping the hassle of TSA. 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. I am a writer and editor with extensive media experience and a passion for journalism and serving the community. Most of my career has been spent with the Miami Herald in business news, and my expertise is writing about tech and entrepreneurs. It's 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. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. 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. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent.