Yep, JetSmarter had changed its terms and conditions again. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. This tailored approach seems to be working. As a renowned principal, Sergey is always finding manners to innovate different industries. Membership swelled to about 10,000. 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. 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 with top-rated private jet operators. He sees his app as not a premium product, but rather as providing value to consumers. In season, helicopter shuttles to the Hamptons from Manhattan are available as well. A few weeks later, Galvez tried to book a JetSmarter flight. As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. [12], On February 16, 2017, the President of Jetsmarter, Edward Gennady Barsky, resigned after he was arrested at the Broward Financial Center, site of the company's headquarters. In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. The Fort Lauderdale, Florida based company opened offices in London, Zurich, Moscow, Dubai, and Saudi Arabia. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. The 12 wealthiest people on the planet grew $36 . After his first exposure to private jet travel when a fellow business owner took him aboard one, Petrossov noticed surprising inefficiencies. For many domestic flights I use our companys private jet offerings.. Education After graduating from high school, Petrossov studied finance at the University of Florida. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. You have this multibillion-dollar industry that was completely analogue, he says. 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. Its about personalization and what I call predictive hospitality. The cost was high., Private jets often sit around empty, further driving up prices. 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. 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. He graduated in 2009. Still, despite JetSmarter's aggressive legal bullying, a number of former members have joined a class action lawsuit against the company. [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. In fact, it is making money on some flights. [CDATA[ brightcove.createExperiences(); Petrossov's biggest success to date, however . It turned out that flight wasn't free as promised. His goal has always been to have in own company and while still in college, he . [39] Anthony Pompliano Net Worth Phone Number, House Address, Wiki, Ashley Massengill Net Worth | Bio, Family, Address, Career, Atlas Monroe Net Worth | Age, Height, Weight, Dating And More, Beyonce S Net Worth Phone Number, House Address, Wiki, Blue Ivy Net Worth Phone Number, House Address, Wiki. 135 following. Its no longer about the brand, marketing and brand association. Not just by the luxury but by how complicated and archaic the process of booking it could be. JetSmarter set out to revolutionize jet travel. The aircraft would be managed and operated by JetEdge, a Part 135 operator. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. 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. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. 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. 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. JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. His success has come from the rising of hard work. 7 calle 1, Suite 204 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. He plays as a right-back for FC Krasnodar. It was also investing a ton of money on marketing and events. Petrossov formed relationships in aviation by going to trade shows. 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. 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. These airplanes are severely under-utilized by flying only 200 hours a year when they could be flying 1,200 hours. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. A Luxury Guide to a Long Weekend in Istanbul, Sjefke Jansen on His New Role as GM of Anantara Kihavah, Le Commandant Charcot: The Worlds Only Luxury Icebreaker, The McLaren Paddock Club: Feel the Beating Heart of Formula 1. An example of data being processed may be a unique identifier stored in a cookie. She was told she could get three years of sophisticated membership for $87,092 a discount from the already discounted $97,500. 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. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. 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. We and our partners use cookies to Store and/or access information on a device. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. 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. What are the main differences between JetSmarter and its close competitors? Also, today, in the tech age, luxury is transcending past brand to experience. That membership goes for $50,000 a year. Sergey Petrossov is thus an ideal successful young entrepreneur. What are the main differences between JetSmarter and its close competitors? 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. [27] In January 2016, Chicago Tribune reported that JetSmarter had launched app-based private charter service in Chicago, using Midway International Airport as its access point. JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. She paid $9,000 for an annual membership in early 2015. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. In 2016 it started eliminating the free helicopter service as well as catering on the flights. In 2004, Petrov stepped down as president of his company to take up politics. Today, the company is mired in lawsuits and worth about a fifth of that $1.5 billion. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. 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. The planes werent being utilized enough. 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. He spends some days speaking with stakeholders while other days are spent meeting clients demands. Oh, and by the way, he borrowed the $97,500 from a friend, so he's still paying back the loan. JetSmarter was losing money hand over fist so it went through three investment rounds to raise. Learn more in our Cookie Policy. It required literally calling to book and signing papers. Whats your marketing strategy? Experienced Entrepreneur. 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. 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. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope. While many 20-somethings stick it out paying their dues in corporate jobs, Petrossov has enthusiastically moved from one uncertain endeavor to another. 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. What was your vision? Remember! 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. What are JetSmarters expansion plans for the future? Partnerships included Pernod Ricard,[33] Vertis Aviation,[34] and SportStar Relocation. The company was offering him its "sophisticated membership," which included unlimited, free private jet flights with a companion pass. 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. Clearlake Capital and Jeffries Capital finally made an investment in JetSmarter rumored to be around $75 million for one third of the company. JetSmarter flight services included a mix of shared and private flights: JetSmarter claimed to offer 3,000 private jets and 2,000 free empty legs per month. Empty-leg flight deals, or repositioning flights. The JetSmarter app is available for iOS and Android download in the iTunes store or Google Play store. // ]]> JetSmarters own Safety Audit Committee analyzes the procedures of all primary operators in the JetSmarter program. When youre young, those are the years you can take the most risks. In order for JetSmarter to keep flying, it had to keep recruiting active members. What was your background prior to JetSmarter? Customers are calling the company a "high tech shell game" and an "unlawful bait and switch" and a "fraud," according to the lawsuits filed against the company. 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's next? Contact me at ndahlbergbiz@gmail.com. Petrossov knows this, which is why he takes his time to build his professional relationships and the JetSmarter brand. But its not just about the brand. 1,302 likes. 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. 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. 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. 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. 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. What. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: www.vistaglobal.com. [35] The company also partnered with Jet Edge and Air Hamburg to cater to its global community of private jet fliers. . 10.5K followers. Exclusively featured by VUE Magazine (vuenj.com). While not familiar with the specifics of JetSmarter until we called him, he said, It raises my red flags., JetSmarter CEO Sergey Petrossov (in tan jacket), and Lolita Petrossov attend the DuJour Media, Gilt and JetSmarter party to kick off Art Basel at the Confidente in Miami Beach last November. 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.. Petrossov was shocked at how out-dated the entire booking processes seemed, and he figured that the whole experience could be streamlined via technology. Petrossov declined to say when JetSmarter would turn a profit. 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. 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. Take as much risk as you can when youre young. ", "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 is most known for founding JetSmarter. We are continually looking at ways and means to expand our offerings within the region, and globally. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. 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. Asia Pacific +65 6212 1000. The flights Horchow took were a fraction of the cost of other private jet companies. (Photo by Gustavo Caballero/Getty Images for DuJour). 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. 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. 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. [29], In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. 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. Hes had that spirit, he says, since his teens. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. [10][11] JetSmarter had offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale. We spend a lot of time asking members to spread the word. Dorado, PR 00646, Metro Office Park The world's 12 wealthiest people got richer by $36 billion in a day - and have now gained $264 billion in net worth this year. Kim Kardashian, Kanye West, and DJ Khaled are customers of JetSmarter. Noting that this was the only travel and transportation market that had not gone digital, Petrossov had his A-ha! moment. [13], On September 5, 2018, a JetSmarter shared charter flight from Las Vegas to New York had to make an emergency landing in North Platte, Nebraska, after a passenger threatened other passengers and the crew. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. Your education and upbringing? But guess what happened when she and other new sophisticated members tried to book flights? JetSmarter, the once high-flying South Florida unicorn, is being acquired. According to former employees, in 2016 and 2017, JetSmarter was losing $5 million a month. We used this funding to expand our JetShuttle offerings and continue to expand globally. Dont give up, he says. [30], JetSmarter partnered with various air carriers that span the range of the private charter industry. His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. There is no such thing as a typical day for Petrossov. Jul 10, . JetSmarter was a corporation and mobile application for private jet users. What was your vision for the mobile app? [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. Petrossov, a native of Russia and graduate of the University of Florida, had been involved with two tech startups before launching JetSmarter in 2013. Required fields are marked *. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. 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. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. For more information visit: www.jetsmarter.com. My membership meant nothing anymore. But that has raised concerns for some of JetSmarter's customers. Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. After paying nearly $90,000 for memberships, they were being told they had to pay more to actually USE their memberships. var _Hasync=_Hasync||[];_Hasync.push(['Histats.start','1,4553220,4,511,95,18,00000000']);_Hasync.push(['Histats.fasi','1']);_Hasync.push(['Histats.track_hits','']);(function(){var hs=document.createElement('script');hs.type='text/javascript';hs.async=true;hs.src=('//s10.histats.com/js15_as.js');(document.getElementsByTagName('head')[0]||document.getElementsByTagName('body')[0]).appendChild(hs);})(); Sergey Petrossov has become the most popular person by his significant works. As Galvez told CNBC: "My heart dropped. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. Awarded Forbes 30 Under 30 in Consumer Technology and South Florida's Top Working Professional by the Sun Sentinel, Sergey Petrossov is a serial entrepreneur and investor always seeking ways to innovate industries. As they grew, JetSmarter began offering own shuttle services it would charter a plane on a popular route and fill it with JetSmarter members. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. His advice to millennials like him who want to create companies is to be bold sooner rather than later. A year later, JetSmarter needed more cash. It is expected to close in the second quarter. How do you source your planes, staff and pilots? Sergey Petrossov launched JetSmarter, the Uber for private jet travel in 2013. When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. Your education and upbringing? 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. It couldn't even meet payroll. The company charters them or books space on them from other companies. Lots 81-82 Street C 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. What are JetSmarters expansion plans for the future? Its not every day that you see a 29-year-old at the helm of a billion-dollar company. JetSmarters goal is also to utilize those passenger-free flight hours and fill them. Petrossov is most known for founding JetSmarter, a technology company 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. Elizabeth Holmes set out to revolutionize blood testing with Theranos. 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. Intrigued and determined to find a way to make the private flight experience much more convenient, he started researching the industry and formulating solutions. [37] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000. Because you cant when youre older., His other tip, which hes put to use himself, is simple. 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. [28] Adding to its services, the company offered helicopter transfers in select cities. Were still educating. Airplanes could fly five to seven times more if they were efficiently run, he said. JetSmarter bought those seats at a heavy discount and then connected the seats to passengers through their app. There are 4 professionals named "Sergey Petrossov", who use LinkedIn to exchange information, ideas, and opportunities. 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. Offers may be subject to change without notice. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Author Recent Posts Follow me Nancy Dahlberg Just go do it, he says. Founder and CEO of JetSmarter The buyer of the Lauderdale-based company that provides an Uber-for-jets service is Dubai-based Vista Global, Bloomberg reported this morning. 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. View the profiles of professionals named "Sergey Petrossov" on LinkedIn. 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. Posts Videos Tagged. Does that sound familiar? So far, there is no announcement on the JetSmarter website. Continue with Recommended Cookies, Your email address will not be published. Instead, his focus is on creating a world-class, hospitality-driven experience. 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. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. 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. In other incidences, passengers and crew members have witnessed passengers using JetSmarter to transport drugs or large amounts of cash. In March 2013, JetSmarter launched globally. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. TAGS:AIRPLANEAVIATIONFLYFLYINGJETJET SMARTERLUXURYPRIVATE. The added costs of the flights made it too expensive for him. And so JetSmarter came to be, though not easily. As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. If a friend says JetSmarter is the best, the trust factor goes up. 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. 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. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. JetSmarter still has to deal with inquiries from the FAA. 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. He filed a lawsuit against JetSmarter and its salesperson. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. His brother was also an employee. Our average user visits JetSmarter 12 times daily. Russia. I agree to Money's. This tailored approach seems to be working. 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. Whats your marketing strategy? Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. When he was a student at the University of Florida, he got exposed to computer science and joined a startup for live chatting. [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. The shuttles were a big success. Is this another Elizabeth Holmes or Billy McFarland situation or did JetSmarter expand too quickly? Im taking on a little extra responsibility, he said. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. What was your vision for the mobile app? Today, there are about 8,000 JetSmarter members. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. JetSmarter is headquartered in Fort Lauderdale, Florida, and maintains offices in Zurich, Moscow, London, Riyadh, and Dubai. Members also have access to free last-minute flights on empty legs. How did the journey with JetSmarter begin? Constant innovation hinges on always anticipating the clients next move and tendencies and catering to them. The company held champagne filled parties in Miami, Los Angeles, and New York to attract rich new members. 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."
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