Its like a country club that follows you around, Petrossov said. The company was headquartered in Fort Lauderdale, Florida, United States. The idea was so simple it seemed impossible that someone hadn't thought about it before. We think about three pillars: how you get there, who you meet and where you go. 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. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. 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.. Petrossov was shocked at how out-dated the entire booking processes seemed, and he figured that the whole experience could be streamlined via technology. He graduated in 2009. We spend a lot of time asking members to spread the word. [CDATA[ brightcove.createExperiences(); More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. 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. 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. 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. 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. He filed a lawsuit against JetSmarter and its salesperson. Petrossov, a native of Russia and graduate of the University of Florida, had been involved with two tech startups before launching JetSmarter in 2013. Rick Scott joined JetSmarter CEO Sergey Petrossov to cut the ribbon on the company's new multimillion-dollar headquarters office in downtown Fort Lauderdale. In September 2016, then-Florida Gov. CNBC spoke to Joann Bachewicz from Lansing, Illinois. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. [40], In January 2019, CNBC aired an investigative report on JetSmarter, titled "Tailspin", stating that "JetSmarter tried to be the Uber of private jets, now it faces lawsuits, losses and security questions". JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. When CNBC contacted former and current employees for their investigation, they received a cease and desist from JetSmarter. Hes had that spirit, he says, since his teens. 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. Our goal is to one day make all air travel private. 1,302 likes. 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. I dont know. 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. National team caps and goals, correct as of 19 November 2019. He has a clear vision for what flying private should be, and he wont stop there. We are continually looking at ways and means to expand our offerings within the region, and globally. 7 calle 1, Suite 204 His advice to millennials like him who want to create companies is to be bold sooner rather than later. There are also concerns over security. [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. Manage Settings 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. Just hail a private jet", "Interview: How Sergey Petrossov revolutionized private jet business", "The JetSmarter App Puts Air Travel at Your Fingertips", "JetSmarter puts a jet in your pocket, and is happy to see you", https://privatejetcardcomparisons.com/2018/09/08/jetsmarter-flight-diverted-after-threats-from-a-passenger/, https://www.miamiherald.com/news/business/article229059544.html, "Meet the private-jet startup backed by Jay Z and the Saudi royal family", "An 'Uber for private jets' startup just raised $20 million from Jay Z and the Saudi Royal Family", "With $20M In The Bank, JetSmarter Is Building The Uber Of The Skies", "Private-Jet Booking App Lands $105 Million in Funding", "JetSmarter Raises $105 Million for Uber-Like Services in the Sky", "Jay Z-backed private jet firm JetSmarter raises $105 million at $1.5 billion valuation", "Jet Membership Seller JetSmarter Raises An Undisclosed Amount Of Institutional Capital Private Jet Card Comparisons Know Before You Buy", "Lawsuits, layoffs, safety concerns, and now lack of flights cloud JetSmarter's future", "Need a Private Jet in a Pinch? She was told she could get three years of sophisticated membership for $87,092 a discount from the already discounted $97,500. Thank you for subscribing to Elite Traveler. www.vistaglobal.com. 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. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. Remember! What's next? 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. The Fort Lauderdale, Florida based company opened offices in London, Zurich, Moscow, Dubai, and Saudi Arabia. Americas +1 212 318 2000. Founder and CEO of JetSmarter 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. 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. 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. His wife Lolita ran the day to day business as its CEO. 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. Sergey Petrossov. Kim Kardashian, Kanye West, and DJ Khaled are customers of JetSmarter. 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 went to the University of Florida and studied finance. JetSmarter was losing money hand over fist so it went through three investment rounds to raise. 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? this link is to an external site that may or may not meet accessibility guidelines. 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. 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." Born in Moscow, Petrossov relocated to the United States with his family at the age of four. Members also have access to free last-minute flights on empty legs. The company was offering him its "sophisticated membership," which included unlimited, free private jet flights with a companion pass. 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. 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. . Follow @ndahlberg on Twitter and email ndahlbergbiz@gmail.com. Offers may be subject to change without notice. Instead it acts as a middleman between private jets and passengers looking for seats. The buyer of the Lauderdale-based company that provides an Uber-for-jets service is Dubai-based Vista Global, Bloomberg reported this morning. It required literally calling to book and signing papers. Here's Where to Start, 6 Random Job Skills Employers Are Looking for in the Covid Era, 5 Time Management Tips That Will Make You More Money, How to Pay Off Debt Even If You Just Lost Your Job, Meet the 29-Year-Old CEO Who Turned His Hobby Into a $1.5 Billion Business That's Backed by Jay-Z. 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. Its about personalization and what I call predictive hospitality. JetSmarter is headquartered in Fort Lauderdale, Florida, and maintains offices in Zurich, Moscow, London, Riyadh, and Dubai. In fact, it is making money on some flights. 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. And let's not forget Billy McFarland and the Fyre Festival debacle. Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. Members are able to book private jets in a matter of minutes, right from the palm of their hand. 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. For Petrossov, his vision is one that goes beyond mere name recognition and service. [2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation. I moved to South Florida when I was 11 or 12. How did the journey with JetSmarter begin? Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. Codispoti said by email that he joined JetSmarter as CFO in October. 10.5K followers. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. Petrossov loves to fly and has traveled all over the world. Russia. (1) *Club domestic league appearances and goals, correct as of 23 April 2023. We think about three pillars: how you get there, who you meet and where you go. What was your vision? [29], In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. [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. Im taking on a little extra responsibility, he said. JetSmarter, the once high-flying South Florida unicorn, is being acquired. Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. Clearlake Capital and Jeffries Capital finally made an investment in JetSmarter rumored to be around $75 million for one third of the company. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. Petrossov's family, however, profited handsomely. Download JetSmarter. She paid $9,000 for an annual membership in early 2015. Take as much risk as you can when youre young. Save time and get . Members raved about the service, which at the time, gave them all you can fly private jet service for as little as $7,000 a year. I moved to South Florida when I was 11 or 12. We used this funding to expand our JetShuttle offerings and continue to expand globally. Business growth largely depends on a combination of innovation and marketing. In other media reports, Vista Global indicated it planned to keep on JetSmarters tech employees based in the companys downtown Fort Lauderdale headquarters, and may even increase employment. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. Trial and error drive progress and are at the heart of innovation. Sergey Petrossov is a serial entrepreneur and successful businessman. In the Forbes report, Vista Chairman Thomas Flohr described the deal as primarily an equity swap. But its not just about the brand. You heard it here first. Required fields are marked *. 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. JetSmarters goal is also to utilize those passenger-free flight hours and fill them. And so JetSmarter came to be, though not easily. Strategies for Business Growth and Productivity. Shocked that Samsung has been considering switching its default phone search to Microsofts Bing, with Apple's contract up for renewal as well, Google is pulling out all the stops for Google I/O next month with new chat features for its traditional search function, while keeping Bard at bay. In December, it garnered a giant $105 million round of financing that pushed the private companys valuation to $1.5 billion. I knew I wanted to go in technology, Petrossov says. Having visited more than 30 countries, Petrossov named New York City as his favorite travel destination and Hong Kong as the next stop on his list. Whats your marketing strategy? Sergey Petrossov, CEO of JetSmarter Autopilot is a godsend for getting work done in the car Sergey Petrossov of JetSmarter in his office in Fort Lauderdale, Florida Josh Ritchie/FT Janina. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". 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. 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 think some people just have drive and passion for what theyre doing. All Rights Reserved. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. Petrossov formed relationships in aviation by going to trade shows. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. Youd have only two to three people on an average airplane. 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. Private jet travel is more accessible than people think. 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. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: Select Accept to consent or Reject to decline non-essential cookies for this use. This achievement has led to his being one of the worlds wealthiest men. Noting that this was the only travel and transportation market that had not gone digital, Petrossov had his A-ha! moment. 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. Many customers reported that they had planes entirely to themselves. I agree to Money's. It was a challenging way to get here. 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. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. View the profiles of professionals named "Sergey Petrossov" on LinkedIn. For more information visit: www.jetsmarter.com. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. 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. JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. Petrossov was motivated to create companies in his teens Be the first to know about the latest in luxury lifestyle news and travel. 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. JetSmarter was basically throwing cash on the fire and watching it burn. How did the journey with JetSmarter begin? His goal has always been to have in own company and while still in college, he . 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. Yep, JetSmarter had changed its terms and conditions again. Sergey Petrossov, a Young Man with a Big Dream: Sergey Petrossov moved to the U.S. as a young boy, and his family finally settled in Florida. What. The hardest thing for a disruptive company is getting people to try it out. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. Similar to advertising, if a company or executive are shown in a negative light, the product they are selling will likely suffer. Sergey Petrov, 32, from Russia FK Krasnodar, since 2012 Right-Back Market value: 1.00m * Jan 2, 1991 in St. Petersburg, UdSSR In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. Elizabeth Holmes set out to revolutionize blood testing with Theranos. Our average user visits JetSmarter 12 times daily. What was your vision for the mobile app? Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. 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. 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. 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. 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. When it comes to private jets, you think Jay-Z flying for $60,000.
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