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. JetSmarter bought those seats at a heavy discount and then connected the seats to passengers through their app. Innovating For The Mass Affluent: A Q&A With JetSmarter CEO Sergey He has a clear vision for what flying private should be, and he wont stop there. World's 12 Wealthiest People Got $36 Billion Richer in a Single Day When it comes to private jets, you think Jay-Z flying for $60,000. Jet Life: Sergey Petrossov - LinkedIn . JetSmarter went on to raise more than a million dollars in funding, grew to a company with 260 employees and reportedly hit a unicorn valuation of $1.6 billion about two years ago, with backers like rapper Jay-Z and the Saudi royals. The company held champagne filled parties in Miami, Los Angeles, and New York to attract rich new members. And let's not forget Billy McFarland and the Fyre Festival debacle. Through the investments, the organization is worth $1.5 billion. 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 shuttles were a big success. I went to the University of Florida and studied finance. Sergey is most known for founding JetSmarter. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. 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.. [CDATA[ JetSmarter has not been without its hiccups. Or will JetSmarter go down in the annals of history as another good idea that was unable to be realized by its under experienced founder and CEO? 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. 5. The flights Horchow took were a fraction of the cost of other private jet companies. Just go do it, he says. The hardest thing for a disruptive company is getting people to try it out. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. The partners that we have cover a large number of international destinations, to enable our customers to be able to fly worldwide within as little as six hours from booking their flight. The problem is, he was the key person dealing with the company's investors. JetSmarter was a corporation and mobile application for private jet users. What was your vision for the mobile app? Meet the CEO of JetSmarter, the Uber of Private Jets | Money 135 following. Have news? Instead, his focus is on creating a world-class, hospitality-driven experience. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. Petrossov, a native of Russia and graduate of the University of Florida, had been involved with two tech startups before launching JetSmarter in 2013. [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. Codispoti said by email that he joined JetSmarter as CFO in October. 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. I agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. Our average user visits JetSmarter 12 times daily. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). 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. This button displays the currently selected search type. Lots 81-82 Street C This page was last edited on 13 April 2023, at 03:18. Even CNBC, in their reporting on this issue, received a letter from JetSmarter's general counsel demanding that they "immediately cease and desist" calling former and current employees. Where and how did you raise capital for the company? As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. 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. 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. What was your background prior to JetSmarter? [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. 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. Petrossov was shocked at how out-dated the entire booking processes seemed, and he figured that the whole experience could be streamlined via technology. 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. 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 aircraft would be managed and operated by JetEdge, a Part 135 operator. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. Members are able to book private jets in a matter of minutes, right from the palm of their hand. The catch-22 was that the more members the company signed up, the faster they burned through their investment money. 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. 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. National team caps and goals, correct as of 19 November 2019. By enabling guests to travel to over 170 countries worldwide, JetSmarter is often referred to as a country club in the air.. The company had no comment on The Verge reporting or Barsky's exit for this story. Sergey Petrossov's Sky-High Ambitions - Yahoo Finance For Petrossov, his vision is one that goes beyond mere name recognition and service. Kim Kardashian, Kanye West, and DJ Khaled are customers of JetSmarter. 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. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope. 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 I dont know. Awarded Forbes 30 Under 30 in Consumer Technology, Petrossov is an entrepreneur by trade and has taken JetSmarter to heights no one would have imagined no one but himself, of course. Its about personalization and what I call predictive hospitality. Our goal is to one day make all air travel private. Back in the early days, a JetSmarter membership also included free helicopter service to its airports and catering on the flights. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: But the app still requires convincing. Sergey Petrossov launched JetSmarter, the Uber for private jet travel in 2013. One of the most essential aspects that move a business forward is the errors that happen along the way. 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. Youd have only two to three people on an average airplane. Were still educating. 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. 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. The hardest thing on the demand side, he says, is to change consumer behavior. 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. Jetsmarter, The Uber For Private Jets Is Facing Lawsuits And A year later, JetSmarter needed more cash. Petrossov loves to fly and has traveled all over the world. His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. In fact, they were even cheaper than flying first class on commercial airlines. Sergey Petrossov (@sergey) Instagram photos and videos Instead, his focus is on creating a world-class, hospitality-driven experience. 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. 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. How do you source your planes, staff and pilots? All while avoiding the hassle and headache of airport security screenings. Where and how did you raise capital for the company? Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. The report included a video of a JetSmarter flight that was diverted by a passenger making terroristic threats.[41]. The company faces unknown costs from the lawsuits and refunds, the class action lawsuit, and the outcome of the investigations by the FAA and FBI. JetSmarter CEO Sergey Petrossov's Sky-High Ambitions In March 2013, JetSmarter launched globally. 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 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 . https://money.com/jetsmarter-uber-private-jets-ceo/. 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. As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. 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. Because you cant when youre older., His other tip, which hes put to use himself, is simple. For more information visit: www.jetsmarter.com. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. But its not just about the brand. How do you source your planes, staff and pilots? Even if that cost is divided by eight to 10 passengers, JetSmarter was losing money. Charter a flight with the tap of an app - Sun Sentinel 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. 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. Sergey Petrossov, Big Dreams Lead to Great Success This story was updated throughout the day. From 2007 to 2015, he served as a State Duma deputy from "Just Russia" (though he never actually joined the . JetSmarters goal is not only to make it easier for people to fly in luxury. In fact, it is making money on some flights. His advice to millennials like him who want to create companies is to be bold sooner rather than later. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Author Recent Posts Follow me Nancy Dahlberg EMEA +44 20 7330 7500. Basically, they are bullying anyone critical of the company. So JetSmarter makes empty seats available via its app to anyone looking to jet quickly to their next destination for a price. He spends some days speaking with stakeholders while other days are spent meeting clients demands. Additionally, JetSmarter partners exclusively with operators that carry a Wyvern Wingman or ARG/US Gold or Platinum safety rating, viewable in the app along with each aircrafts liability insurance. For the record, JetSmarter's membership agreement states that the company can "change, suspend, or terminate" services or benefits at any time. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. Many private jets flying the friendly skies are empty or nearly so. 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. For Petrossov, his vision is one that goes beyond mere name recognition and service. Not just by the luxury but by how complicated and archaic the process of booking it could be. Manage Settings 2023 Celebrity Net Worth / All Rights Reserved. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. Business growth largely depends on a combination of innovation and marketing. 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. Petrossov is most known for founding JetSmarter, a technology company JetSmarters goal is also to utilize those passenger-free flight hours and fill them. After paying nearly $90,000 for memberships, they were being told they had to pay more to actually USE their memberships. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. Sergey wants to change the aviation business by making private flights accessible to the masses. 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. Sergey Petrossov. [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. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. What began as an idea in 2012 has now become the world's largest private aviation travel and lifestyle community. Then the company started charging members extra money for longer flights. But guess what happened when she and other new sophisticated members tried to book flights? The added costs of the flights made it too expensive for him. For him, it seems innate. 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. Save time and get . But its not just about the brand. 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. [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. JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. Consumers are turned off by processes that make it difficult for them to accomplish their goals. Members are able to book private jets in a matter of minutes, right from the palm of their hand. Sergey Petrossov is a serial entrepreneur and successful businessman. 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. 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. What. View the profiles of professionals named "Sergey Petrossov" on LinkedIn. 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. There is no such thing as a typical day for Petrossov. 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. By this time, however, he no longer practiced business. 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.. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. 1,302 likes. The business news channel also published a letter from JetSmarter's general counsel attempting to quash its investigation. 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. Now people from all walks of life have started evaluating his merits. The idea was so simple it seemed impossible that someone hadn't thought about it before. Dorado, PR 00646, Metro Office Park He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". Top 3 Mistakes Car Buyers Make During Lockdown - LinkedIn At the time, mobile marketplaces were becoming popular, and he saw a chance to apply that idea . Sergey Petrossov: Founder, Chairman & CEO of JetSmarter Remember! In 2012, I spoke to the carriers I had established relationships with and discussed how large of an impact an app to charter a private plane would have on the industry. In 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. 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. The cost was high., Private jets often sit around empty, further driving up prices. 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. JetSmarter put together an impressive investor presentation filled with the projection that revenue would grow from $124 million in 2016 to more than $2 billion in 2019. 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. "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? 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. It was highly inefficient. The letter accused CNBC of "tortuously interfering with JetSmarter's contractual relationships.". 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. Sergey Petrossov - EverybodyWiki Bios & Wiki 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. Im taking on a little extra responsibility, he said. Select Accept to consent or Reject to decline non-essential cookies for this use. You heard it here first. He sees his app as not a premium product, but rather as providing value to consumers. We spend a lot of time asking members to spread the word. 7 calle 1, Suite 204 Petrossov has not responded to my request for an interview. 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. The planes werent being utilized enough. It supported chat for audio and video for website customer service. . Constant innovation hinges on always anticipating the clients next move and tendencies and catering to them. JetSmarter is headquartered in Fort Lauderdale, Florida, and maintains offices in Zurich, Moscow, London, Riyadh, and Dubai. 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. 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. 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. His brother was also an employee. Its no longer about the brand, marketing and brand association. Support. 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. Sergey Petrossov is thus an ideal successful young entrepreneur. How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing Does that sound familiar? Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. [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. We have to do that for the traditional private flyer whos not used to sharing an airplane. As they grew, JetSmarter began offering own shuttle services it would charter a plane on a popular route and fill it with JetSmarter members.
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