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? It couldn't even meet payroll. [7][8] In August 2012, the beta version was launched and tested among a closed group of private aviation users. Theres no effect on the business., There has, however, also been a management shuffle among the chief financial officers over the past year. 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. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. The planes werent being utilized enough. 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. 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. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Your education and upbringing? What was your background prior to JetSmarter? People are becoming more and more interested in Sergey Petrossov because of how much money he makes. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. The hardest thing on the demand side, he says, is to change consumer behavior. But guess what happened when she and other new sophisticated members tried to book flights? 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. I dont know. 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.. After innovation, finding the best way to connect with the audience or the market is the surest way to success. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope. I agree to Money's. However, if the person behind the product, and the product itself, has a relatable story and shows potential customers that it offers value, the likelihood of success is higher. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? 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. The first time Sergey Petrossov flew on a private jet in 2009, he was surprised. How did the journey with JetSmarter begin? The added costs of the flights made it too expensive for him. He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. 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? Basically, they are bullying anyone critical of the company. It said it would use the money to expand services, including routes and flight frequency.[23]. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Take as much risk as you can when youre young. The aim of the mobile app is to make travel fun, easy and convenient for our members. His advice to millennials like him who want to create companies is to be bold sooner rather than later. But the app still requires convincing. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. Our average user visits JetSmarter 12 times daily. 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. Google [x], Rapid Evaluation Program Manager. Petrossov, a native of Russia and graduate of the University of Florida, had been involved with two tech startups before launching JetSmarter in 2013. [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. But that has raised concerns for some of JetSmarter's customers. If a friend says JetSmarter is the best, the trust factor goes up. 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. His success has come from the rising of hard work. What was your background prior to JetSmarter? For many domestic flights I use our companys private jet offerings.. Over the years, JetSmarter has attracted investments from Jay-Z, the Saudi Royal family, and execs from Twitter and Goldman Sachs. Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. 1,302 likes. The report included a video of a JetSmarter flight that was diverted by a passenger making terroristic threats.[41]. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". 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. Petrossov knows this and is always trying to think of ways to improve areas that are lacking in technology. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. I think some people just have drive and passion for what theyre doing. The question was: How was JetSmarter making ANY money off their flights? 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. 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 still has to deal with inquiries from the FAA. This story was updated throughout the day. As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. He is seeking a refund and damages. [10][11] JetSmarter had offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale. [30], JetSmarter partnered with various air carriers that span the range of the private charter industry. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. The company has also been known to sue journalists for writing articles critical of the company if they do not take down the article. Where and how did you raise capital for the company? 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. Strategies for Business Growth and Productivity. In early 2016, it launched flights within Europe. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: [28] Adding to its services, the company offered helicopter transfers in select cities. And so JetSmarter came to be, though not easily. There are approximately 22,000 private flights every single day in the United States, and one-third of them are empty. Author Recent Posts Follow me Nancy Dahlberg Thank you for subscribing to Elite Traveler. 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. 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 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. So far, there is no announcement on the JetSmarter website. Thats the most important thing for entrepreneurs. The startup recently announced it had raised $20 million in funding from the Saudi royal family and celebrities such as Jay-Z. 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. 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. In other incidences, passengers and crew members have witnessed passengers using JetSmarter to transport drugs or large amounts of cash. Copyright 2023 New Statesman Media Group Ltd. Latest in Luxury - Sign up to our newsletter. Then the company started charging members extra money for longer flights. Have news? A few weeks later, Galvez tried to book a JetSmarter flight. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. You have this multibillion-dollar industry that was completely analogue, he says. 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. 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. 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. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. The hardest thing for a disruptive company is getting people to try it out. Thats a shift. A year later, JetSmarter needed more cash. 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. 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. JetSmarters goal is not only to make it easier for people to fly in luxury. In fact, they were even cheaper than flying first class on commercial airlines. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. The aircraft would be managed and operated by JetEdge, a Part 135 operator. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. You can update your choices at any time in your settings. Opinions expressed on this site are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. Guaynabo, PR 00968, By clicking "Continue" I agree to receive newsletters and promotions from Money and its partners. He has a clear vision for what flying private should be, and he wont stop there. 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. Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team was based. What's next? By enabling guests to travel to over 170 countries worldwide, JetSmarter is often referred to as a country club in the air.. What are JetSmarters expansion plans for the future? 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. That membership goes for $50,000 a year. 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. this link is to an external site that may or may not meet accessibility guidelines. According to a recent investigation by Forbes and Business Insider, Sergey Petrossov estimated net worth is more than a couple of million USD, according to the publication. The current CFO is Edward Codispoti, who had previously been chief financial officer at TradeStation. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. JetSmarter was losing money hand over fist so it went through three investment rounds to raise. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. 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. Asia Pacific +65 6212 1000. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. We are continually looking at ways and means to expand our offerings within the region, and globally. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. Sergey Petrossov. Trial and error drive progress and are at the heart of innovation. Our average user visits JetSmarter 12 times daily. Its about personalization and what I call predictive hospitality. Mark Zuckerberg. JetSmarter was a corporation and mobile application for private jet users. How Much Would You Pay To Have Unlimited Flights Around The World Forever. It's 30-year-old founder is scrambling to explain himself. 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. JetSmarter aggregates. Also included for JetSmarter members are complimentary helicopter services, with free transfers to and from New York area airports. 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. 2023 Celebrity Net Worth / All Rights Reserved. Save my name, email, and website in this browser for the next time I comment. Private jet travel is more accessible than people think. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. What was your vision for the mobile app? He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. Members are able to book private jets in a matter of minutes, right from the palm of their hand. This achievement has led to his being one of the worlds wealthiest men. Petrossov has not responded to my request for an interview. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. My membership meant nothing anymore. [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. I moved to South Florida when I was 11 or 12. How do you source your planes, staff and pilots? Our goal is to one day make all air travel private. Not just by the luxury but by how complicated and archaic the process of booking it could be. Airplanes could fly five to seven times more if they were efficiently run, he said. He came up with the idea in 2008, when he graduated from the University of Florida. The company had no comment on The Verge reporting or Barsky's exit for this story. [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. 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. Our goal is to one day make all air travel private. Petrossov loves to fly and has traveled all over the world. 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. 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. [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. Sergey is most known for founding JetSmarter. You heard it here first. For him, it seems innate. Kim Kardashian, Kanye West, and DJ Khaled are customers 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 . The cost was high., Private jets often sit around empty, further driving up prices. [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. JetSmarter has reinvented private air travel by making it affordable and straightforward, doing away with what is considered an antiquated booking system in favor of a streamlined, technological alternative. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. And let's not forget Billy McFarland and the Fyre Festival debacle. When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. Elizabeth Holmes set out to revolutionize blood testing with Theranos. She was told she could get three years of sophisticated membership for $87,092 a discount from the already discounted $97,500. Remember! In 2004, Petrov stepped down as president of his company to take up politics. If a friend says JetSmarter is the best, the trust factor goes up. In December, it garnered a giant $105 million round of financing that pushed the private companys valuation to $1.5 billion. Without trial, there is no error, and without error, there is no improvement. 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. This tailored approach seems to be working. 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. Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. What began as an idea in 2012 has now become the world's largest private aviation travel and lifestyle community. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. Where and how did you raise capital for the company? It required literally calling to book and signing papers. JetSmarter set out to revolutionize jet travel. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. 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.. Its no longer about the brand, marketing and brand association. 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. 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. Instead, his focus is on creating a world-class, hospitality-driven experience. 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.

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