What are the main differences between JetSmarter and its close competitors? Petrossov knows this and is always trying to think of ways to improve areas that are lacking in technology. 15 local leaders selected as GET Cities Champions for gender equity in tech. What was your vision for the mobile app? 5. Today, there are about 8,000 JetSmarter members. In 10 years, I think theres a big opportunity as you move into shorter-distance flights where we can actually deliver a much broader, mass-market solution, where you can actually serve customers at $500 a seat, he says. The startup Sergey wants to change the aviation business by making private flights accessible to the masses. Its not always about price, he said, noting that the company currently has 8,000 members and transports 20,000 people a month. For Petrossov, his vision is one that goes beyond mere name recognition and service. We have to boil that down to them.. People are becoming more and more interested in Sergey Petrossov because of how much money he makes. The company also said it was providing integration via SAP Concur to attract more corporate travel business. What was your vision? [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". For the record, JetSmarter's membership agreement states that the company can "change, suspend, or terminate" services or benefits at any time. JetSmarter faces lawsuits, losses and security questions - CNBC JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. JetSmarter, the once high-flying South Florida unicorn, is being acquired. Your email address will not be published. Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. 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. I wasnt the founder but since I got involved early they called me a co-founder. CNBC spoke to Joann Bachewicz from Lansing, Illinois. From 2007 to 2015, he served as a State Duma deputy from "Just Russia" (though he never actually joined the . 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. Offers may be subject to change without notice. Remember! In 2004, Petrov stepped down as president of his company to take up politics. www.vistaglobal.com. Members also have access to free last-minute flights on empty legs. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? Also, today, in the tech age, luxury is transcending past brand to experience. Sergey Petrossov, Jetsmarter Inc: Profile and Biography He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California. Members are able to book private jets in a matter of minutes, right from the palm of their hand. [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. The consent submitted will only be used for data processing originating from this website. What are the main differences between JetSmarter and its close competitors? Our average user visits JetSmarter 12 times daily. Most of my career has been spent with the Miami Herald in business news, and my expertise is writing about tech and entrepreneurs. What was your background prior to JetSmarter? Connect with Sergey Petrossov: Twitter | Facebook | LinkedIn | Instagram | YouTube, A weekly download of the latest product launches, technology news, innovations in medicine, and more, about 70 percent of all private jets were empty. Codispoti said by email that he joined JetSmarter as CFO in October. This tailored approach seems to be working. When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. But its not just about the brand. According to Petrossov, JetSmarter has been downloaded more than 300,000 times since its launch in March 2013, and while he wasn't willing to share very many figures relating to the business, he. 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. 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. Sergey Petrossov, Advisor, XO His brother was also an employee. But its not just about the brand. One of the benefits to travel by private jet is skipping the hassle of TSA. A year later, JetSmarter needed more cash. He was told he'd have to pay 75% of the cost of his flight. When youre young, those are the years you can take the most risks. The aim of the mobile app is to make travel fun, easy and convenient for our members. The company is still not profitable but it isn't losing as much money on flights. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. The catch-22 was that the more members the company signed up, the faster they burned through their investment money. Theres no effect on the business., There has, however, also been a management shuffle among the chief financial officers over the past year. The current CFO is Edward Codispoti, who had previously been chief financial officer at TradeStation. JetSmarter was basically throwing cash on the fire and watching it burn. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. The plane made an emergency landing in Nebraska and Paola was removed from the plane and arrested. 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. The report included a video of a JetSmarter flight that was diverted by a passenger making terroristic threats.[41]. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Petrossov was motivated to create companies in his teens [20][21][22], In August 2017, JetSmarter said it had raised an undisclosed amount of institutional capital from Clearlake Capital, Leucadia National Corporation and existing investors. // ]]> JetSmarters own Safety Audit Committee analyzes the procedures of all primary operators in the JetSmarter program. Petrossov formed relationships in aviation by going to trade shows. The flights Horchow took were a fraction of the cost of other private jet companies. He jumped at the chance to purchase the longer deal. His wife Lolita ran the day to day business as its CEO. 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. 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. Exclusively featured by VUE Magazine (vuenj.com). 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. [CDATA[ What began as an idea in 2012 has now become the world's largest private aviation travel and lifestyle community. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team was based. Instead, his focus is on creating a world-class, hospitality-driven experience. World's 12 Wealthiest People Got $36 Billion Richer in a Single Day If clients and customers arent happy, the product is doomed to fail, and being at the forefront of what people want and need allows Petrossov to keep his clients and customers happy, setting JetSmarter up for further success. When CNBC contacted former and current employees for their investigation, they received a cease and desist from JetSmarter. 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. 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." But guess what happened when she and other new sophisticated members tried to book flights? 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. Top 3 Mistakes Car Buyers Make During Lockdown - LinkedIn Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. Jul 10, . 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. [14], On April 10, 2019, Dubai-based Vista Global said it had made an agreement to acquire JetSmarter adding it to its aviation portfolio, which includes VistaJet and XOJET. What are JetSmarters expansion plans for the future? View the profiles of professionals named "Sergey Petrossov" on LinkedIn. She paid $9,000 for an annual membership in early 2015. 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. Often called " Uber " for private air travel, JetSmarter enables people to book. Founder Sergey Petrossov said in the brokerage industry, "there's very little transparency." With the JetSmarter app, consumers can see the prices anywhere from $5,000 to $600,000 for a . With JetSmarter, youll no longer have to go through the TSA lines with unreasonable wait times, or have to deal with uncomfortable airplane seats well get you to your destination with comfort and ease. Sergey Petrossov - Forbes 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. 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. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. Sergey Petrossov. He is always looking for ways to streamline processes and use technology to make something better and easier, which he has succeeded at doing with JetSmarter. Learn more about how we make money. 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. It supported chat for audio and video for website customer service. Empty-leg flight deals, or repositioning flights. [2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation. All Rights Reserved. [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. JetSmarter CEO Sergey Petrossov Says Ex-President's Arrest Has 'No Lets meet them, AirOps raises $7M to bring the power of AI to the workplace, Tech Talent Coalition workgroup aims to expand training and hiring opportunities for our local diverse talent, Say goodbye to in-person tours: Check out a home for sale from the comfort of metaverse startup Propyverse, At packed Venture Miami Tech Hiring Fair, breadth and depth of Miami movement on full display. The first beta version of the app was released in August 2012 to a closed group of private jet travelers. But that has raised concerns for some of JetSmarter's customers. Its 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 Saudi Royal Family and Jay Z. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. 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. Whats your marketing strategy? 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. In March 2013, JetSmarter launched globally. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. 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. JetSmarter had been chipping away at its benefits to members over the year. For him, it seems innate. Just go do it, he says. I went to the University of Florida and studied finance. TAGS:AIRPLANEAVIATIONFLYFLYINGJETJET SMARTERLUXURYPRIVATE. As Galvez told CNBC: "My heart dropped. 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. The JetSmarter app is available for iOS and Android download in the iTunes store or Google Play store. Consumers are turned off by processes that make it difficult for them to accomplish their goals. We think about three pillars: how you get there, who you meet and where you go. 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. Sergey Petrossov - Board Advisor @ Vista Global - CrunchBase Sergey Petrossov is thus an ideal successful young entrepreneur. That membership goes for $50,000 a year. Oh, and by the way, he borrowed the $97,500 from a friend, so he's still paying back the loan. And let's not forget Billy McFarland and the Fyre Festival debacle. I agree to Money's. 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. Noting that this was the only travel and transportation market that had not gone digital, Petrossov had his A-ha! moment. [39] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. Because you cant when youre older., His other tip, which hes put to use himself, is simple. Whats your marketing strategy? By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. One of the most essential aspects that move a business forward is the errors that happen along the way. The 12 wealthiest people on the planet grew $36 . With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. The company has a trail of angry customers and at least 13 lawsuits. Posts Videos Tagged. Then, in early 2017, Gennady Barsky, JetSmarter's president was arrested and charged with grand theft. 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. 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? And, if they want, they can book a fully private flight, which comes with a higher cost. His advice to millennials like him who want to create companies is to be bold sooner rather than later. What are JetSmarters expansion plans for the future? Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. Petrossov knows this, which is why he takes his time to build his professional relationships and the JetSmarter brand. You have this multibillion-dollar industry that was completely analogue, he says. Tucker Carlsons Ouster From Fox Criticized By Russias Foreign Minister As Curious News, Google At Risk Of Losing Samsung And Apple Phone Deal To Microsoft AI, Do Not Sell or Share My Personal Information, Limit the Use of My Sensitive Personal Information. JetSmarter bought those seats at a heavy discount and then connected the seats to passengers through their app. 2023 Celebrity Net Worth / All Rights Reserved. When it comes to private jets, you think Jay-Z flying for $60,000. These days, JetSmarter no longer sells memberships. Sources told the New York Post in February that the startup was in rescue talks., Our vision is to create this travel and lifestyle community and to deliver an end-to-end experience for how you get there, who you meet and where you go, Petrossov said in a 2017 interview with me. Serge y Petrossov is the founder and CEO of JetSmarter The idea was so simple it seemed impossible that someone hadn't thought about it before. According to former employees, in 2016 and 2017, JetSmarter was losing $5 million a month. 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. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. 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.. 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. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. Sergey Petrossov: Founder, Chairman & CEO of JetSmarter Sergey Petrossov Young Economics & Finance Graduate With Marketing Experience Interested In Data Analytics Field Published Jun 28, 2020 + Follow Do you feel like pulling your hair out because you . 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. 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. 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. Paychecks were delayed four to five weeks. JetSmarter - Wikipedia In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. The company had no comment on The Verge reporting or Barsky's exit for this story. JetSmarter was losing money hand over fist so it went through three investment rounds to raise cash. It was highly inefficient. Innovating For The Mass Affluent: A Q&A With JetSmarter CEO Sergey Americas +1 212 318 2000. I moved to South Florida when I was 11 or 12. 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. Download JetSmarter. All while avoiding the hassle and headache of airport security screenings. Your education and upbringing? Similar to advertising, if a company or executive are shown in a negative light, the product they are selling will likely suffer. But forJetSmarterFounder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). We spend a lot of time asking members to spread the word. 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. Born in Moscow, Petrossov relocated to the United States with his family at the age of four. Copyright 2023 New Statesman Media Group Ltd. Latest in Luxury - Sign up to our newsletter. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere.

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