Members are able to book private jets in a matter of minutes, right from the palm of their hand. 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. This achievement has led to his being one of the worlds wealthiest men. The question was: How was JetSmarter making ANY money off their flights? Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. Required fields are marked *. His success has come from the rising of hard work. 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. 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. Its about personalization and what I call predictive hospitality. This tailored approach seems to be working. Many customers reported that they had planes entirely to themselves. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. Exclusively featured by VUE Magazine (vuenj.com). JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. 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. 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? But its not just about the brand. 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. 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. Just go do it, he says. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. The problem is, he was the key person dealing with the company's investors. Thank you for subscribing to Elite Traveler. He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California. https://money.com/jetsmarter-uber-private-jets-ceo/. 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. What was your background prior to JetSmarter? 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. What's next? 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." Petrossov is most known for founding JetSmarter, a technology company Its not always about price, he said, noting that the company currently has 8,000 members and transports 20,000 people a month. 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. 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. Have news? Save my name, email, and website in this browser for the next time I comment. In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. The company also said it was providing integration via SAP Concur to attract more corporate travel business. Petrossov knows this and is always trying to think of ways to improve areas that are lacking in technology. As a renowned principal, Sergey is always finding manners to innovate different industries. Hes had that spirit, he says, since his teens. Download JetSmarter. 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. 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. What was your vision for the mobile app? What was your vision? 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. There are also concerns over security. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? 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. [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. Rick Scott joined JetSmarter CEO Sergey Petrossov to cut the ribbon on the company's new multimillion-dollar headquarters office in downtown Fort Lauderdale. Save time and get . We spend a lot of time asking members to spread the word. He realized that if he were to take the industry digital, not only could he revitalize it and make the process easier for everyone involved, but he could significantly cut the cost of private air travel. Before JetSmarter, he cofounded an educational startup that sold cloud-based software for schools and universities in Eastern Europe and Russia, countries that couldnt afford legacy systems. Aviation, he adds, was my side hobby.. Sergey Petrossov. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. Sergey Petrossov is thus an ideal successful young entrepreneur. 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. In season, helicopter shuttles to the Hamptons from Manhattan are available as well. But when you present all the pros, you save a significant amount of money. As he points out, members are still able to choose an airport and time, and other users can opt in for the excursion. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. Born in Moscow, Petrossov relocated to the United States with his family at the age of four. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. After paying nearly $90,000 for memberships, they were being told they had to pay more to actually USE their memberships. In the Forbes report, Vista Chairman Thomas Flohr described the deal as primarily an equity swap. It was highly inefficient. Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. Instead, his focus is on creating a world-class, hospitality-driven experience. 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. Education After graduating from high school, Petrossov studied finance at the University of Florida. Like Uber, Lyft, and AirBnb, who don't own the cars or properties they peddle, JetSmarter does not own the planes. // < ! Select Accept to consent or Reject to decline non-essential cookies for this use. The company has a trail of angry customers and at least 13 lawsuits. From 2007 to 2015, he served as a State Duma deputy from "Just Russia" (though he never actually joined the . Petrossov was shocked at how out-dated the entire booking processes seemed, and he figured that the whole experience could be streamlined via technology. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). What was your background prior to JetSmarter? Sergey Petrossov launched JetSmarter, the Uber for private jet travel in 2013. What are JetSmarters expansion plans for the future? JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. Get an inside vue on the latest in luxury. "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? In 2006, Sergey co-founded LiveContact, and in 2009 he co-founded a distance-learning solutions company called Federal Systems of Distance Education, which helped give Russian students access to pertinent educational materials. 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. 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.. What are JetSmarters expansion plans for the future? Primary Menu Sections. The FBI is also investigating JetSmarter, specifically about the business and sources of cash, drug transportation, and the cash customers transported on JetSmarter flights. I agree to Money's. Posts Videos Tagged. The charges were related to a former business, not JetSmarter. 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 . Russia. Its no longer about the brand, marketing and brand association. 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. Customers started accusing JetSmarter of bait and switch. 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. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. 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. Today the company -- which bills itself as the Uber for private jets -- has 14,000 paid members paying up to $15,000 a year for perks that include the ability to schedule flights and share seats on jets scheduled by others. For the record, JetSmarter's membership agreement states that the company can "change, suspend, or terminate" services or benefits at any time. In other incidences, passengers and crew members have witnessed passengers using JetSmarter to transport drugs or large amounts of cash. She flew across the country in a Gulfstream IV 13 times. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. Copyright 2023 New Statesman Media Group Ltd. Latest in Luxury - Sign up to our newsletter. 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. 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. Were still educating. JetSmarter is headquartered in Fort Lauderdale, Florida, and maintains offices in Zurich, Moscow, London, Riyadh, and Dubai. Support. He decided to organize planes in a digital fashion with high utilization and a lower cost of entry.. Sergey Petrossov is a serial entrepreneur and successful businessman. Rather than just thinking of ways to improve a service digitally, he tries to focus on how he and his product can improve lives and lifestyles. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. It projected that membership would grow from 5,839 in 2016 to more than 100,000 in 2019. LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and (except on the iOS app) to show you relevant ads (including professional and job ads) on and off LinkedIn. With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. Can the company ever be profitable without the all you can fly private jet memberships that made it famous and attracted thousands of customers? Still, despite JetSmarter's aggressive legal bullying, a number of former members have joined a class action lawsuit against the company. This story was updated throughout the day. 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. That membership goes for $50,000 a year. I think some people just have drive and passion for what theyre doing. He initially resided in California and later moved to Florida, where he continues to live today. As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. Whats your marketing strategy? Our goal is to one day make all air travel private. CNBC spoke to Joann Bachewicz from Lansing, Illinois. Dont give up, he says. They were doing this stuff back in 2005, 2006. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. The company is still not profitable but it isn't losing as much money on flights. Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. He has a clear vision for what flying private should be, and he wont stop there. With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. 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. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". By this time, however, he no longer practiced business. Is this another Elizabeth Holmes or Billy McFarland situation or did JetSmarter expand too quickly? Sergey is most known for founding JetSmarter. 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. Pretend youre 80 years old and looking back on your lifehow would you feel if you didnt try anything? I moved to South Florida when I was 11 or 12. How did the journey with JetSmarter begin? Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope. JetSmarter was losing money hand over fist so it went through three investment rounds to raise cash. 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. 5. Thats the most important thing for entrepreneurs. He put its revenue in the hundreds of millions, which he hops to double in the next two years. 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. In September 2016, then-Florida Gov. Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. is john constantine immortal, berlin wi high school basketball, the state newspaper obituaries columbia sc,