(Epstein declined to comment.). Business growth largely depends on a combination of innovation and marketing. 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. 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. 135 following. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. This is just a sample. Petrossov declined to divulge revenues, but if 8,000 members are paying $15,000 a year that would mean $120 million in annual membership fees alone. Members also have access to free last-minute flights on empty legs. There are approximately 22,000 private flights every single day in the United States, and one-third of them are empty. You heard it here first. 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. 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 Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. I moved to South Florida when I was 11 or 12. In December, it garnered a giant $105 million round of financing that pushed the private companys valuation to $1.5 billion. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. Our average user visits JetSmarter 12 times daily. 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. The aim of the mobile app is to make travel fun, easy and convenient for our members. Guaynabo, PR 00968, By clicking "Continue" I agree to receive newsletters and promotions from Money and its partners. Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. Not just by the luxury but by how complicated and archaic the process of booking it could be. As Galvez told CNBC: "My heart dropped. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. Is this another Elizabeth Holmes or Billy McFarland situation or did JetSmarter expand too quickly? Instead it acts as a middleman between private jets and passengers looking for seats. [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. Select Accept to consent or Reject to decline non-essential cookies for this use. JetSmarters goal is also to utilize those passenger-free flight hours and fill them. The hardest thing on the demand side, he says, is to change consumer behavior. Our average user visits JetSmarter 12 times daily. The cost was high., Private jets often sit around empty, further driving up prices. She was told she could get three years of sophisticated membership for $87,092 a discount from the already discounted $97,500. Then, in early 2017, Gennady Barsky, JetSmarter's president was arrested and charged with grand theft. We think about three pillars: how you get there, who you meet and where you go. The hardest thing for a disruptive company is getting people to try it out. 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. 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. Private jet travel is more accessible than people think. Sergey Petrossov is thus an ideal successful young entrepreneur. 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. 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 . It required literally calling to book and signing papers. TAGS:AIRPLANEAVIATIONFLYFLYINGJETJET SMARTERLUXURYPRIVATE. 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. 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. Terms of the transaction were not disclosed. Americas +1 212 318 2000. The charges were related to a former business, not JetSmarter. He has a clear vision for what flying private should be, and he wont stop there. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. We think about three pillars: how you get there, who you meet and where you go. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Barsky had been the companys CFO before being promoted to president in January 2016, and his replacement as CFO, Joey Epstein, stayed just 10 months, before departing in October, according to his LinkedIn profile. 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. Save time and get . He filed a lawsuit against JetSmarter and its salesperson. 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. The company is still not profitable but it isn't losing as much money on flights. [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. It was the easiest money I ever lost in my life.". Born in Moscow, Petrossov relocated to the United States with his family at the age of four. Our goal is to one day make all air travel private. Thats a shift. When he was a student at the University of Florida, he got exposed to computer science and joined a startup for live chatting. It was highly inefficient. One of the benefits to travel by private jet is skipping the hassle of TSA. The letter accused CNBC of "tortuously interfering with JetSmarter's contractual relationships.". It was also investing a ton of money on marketing and events. 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. 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. One of the most essential aspects that move a business forward is the errors that happen along the way. This story was updated throughout the day. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing Private Aviation Sergey Petrossov's solid work ethic and drive to succeed as an entrepreneur has been evident since. JetSmarter, the once high-flying South Florida unicorn, is being acquired. Whats your marketing strategy? Also included for JetSmarter members are complimentary helicopter services, with free transfers to and from New York area airports. Some flights have security dogs inspecting bags, but many have no security checks at all. Trial and error drive progress and are at the heart of innovation. While many 20-somethings stick it out paying their dues in corporate jobs, Petrossov has enthusiastically moved from one uncertain endeavor to another. He noted that the company had recently added access to 8,000 luxury homes (and villas) to its system. Strategies for Business Growth and Productivity. The shuttles were a big success. Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. The company was offering him its "sophisticated membership," which included unlimited, free private jet flights with a companion pass. It's 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. Many companies featured on Money advertise with us. 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. He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California. My membership meant nothing anymore. I fly three or four times a month, usually three domestic flights and one international flight, said Petrossov. Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. 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. Then the company started charging members extra money for longer flights. JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? 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. When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. It is expected to close in the second quarter. Elizabeth Holmes set out to revolutionize blood testing with Theranos. [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. 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. Its no longer about the brand, marketing and brand association. We are continually looking at ways and means to expand our offerings within the region, and globally. Many customers reported that they had planes entirely to themselves. 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. He initially resided in California and later moved to Florida, where he continues to live today. 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." The FBI is also investigating JetSmarter, specifically about the business and sources of cash, drug transportation, and the cash customers transported on JetSmarter flights. 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 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. 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 . Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. [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. With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. And so JetSmarter came to be, though not easily. 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 says the company has at times been misunderstood but hes worked hard to make its value clear. In early 2016, it launched flights within Europe. The plane made an emergency landing in Nebraska and Paola was removed from the plane and arrested. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. Remember! 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. The JetSmarter app is available for iOS and Android download in the iTunes store or Google Play store. 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. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. 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 aggregates. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. If a friend says JetSmarter is the best, the trust factor goes up. Codispoti said by email that he joined JetSmarter as CFO in October. 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 . After innovation, finding the best way to connect with the audience or the market is the surest way to success. The company had no comment on The Verge reporting or Barsky's exit for this story. Work stopped on Bezos' megamansion as his net worth drops by $57B Oh, and by the way, he borrowed the $97,500 from a friend, so he's still paying back the loan. How did the journey with JetSmarter begin? Customers started accusing JetSmarter of bait and switch. 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. 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. Constant innovation hinges on always anticipating the clients next move and tendencies and catering to them. Galvez isn't the only JetSmarter customer with a grievance. Required fields are marked *. 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. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. If you truly believe in what youre doing, youll get there one way or another., Money Group, LLC 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. 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. 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. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. Be the first to know about the latest in luxury lifestyle news and travel. What are JetSmarters expansion plans for the future? 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. [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. Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. Membership swelled to about 10,000. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. 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. 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. It supported chat for audio and video for website customer service. When it comes to private jets, you think Jay-Z flying for $60,000. 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. 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. Petrossov formed relationships in aviation by going to trade shows. 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. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. 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 JetSmarter was losing money hand over fist so it went through three investment rounds to raise cash. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. Without trial, there is no error, and without error, there is no improvement. Our goal is to one day make all air travel private. His brother was also an employee. JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. 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. What's next? This story was updated throughout the day. 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 order for JetSmarter to keep flying, it had to keep recruiting active members. The startup Sergey wants to change the aviation business by making private flights accessible to the masses. Sergey Petrossov is a successful businessman and entrepreneur. Its third round in 2016 raised $105 million and put the valuation of the startup at $1.5 billion. Petrossov is most known for founding JetSmarter, a technology company What was your background prior to JetSmarter? Does that sound familiar? JetSmarter was a corporation and mobile application for private jet users. JetSmarter had been chipping away at its benefits to members over the year. Its about personalization and what I call predictive hospitality. 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. Members are able to book private jets in a matter of minutes, right from the palm of their hand. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. So JetSmarter makes empty seats available via its app to anyone looking to jet quickly to their next destination for a price. How Much Would You Pay To Have Unlimited Flights Around The World Forever. He is seeking a refund and damages. 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. It turned out that flight wasn't free as promised. 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. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. The company held champagne filled parties in Miami, Los Angeles, and New York to attract rich new members. 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. Many private jets flying the friendly skies are empty or nearly so. The company charters them or books space on them from other companies. The company has a trail of angry customers and at least 13 lawsuits. Thank you for subscribing to Elite Traveler. We spend a lot of time asking members to spread the word. The problem is, he was the key person dealing with the company's investors. This achievement has led to his being one of the worlds wealthiest men. By this time, however, he no longer practiced business. 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. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: The 12 wealthiest people on the planet grew $36 . I went to the University of Florida and studied finance. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. I am a writer and editor with extensive media experience and a passion for journalism and serving the community. [39] Galvez is no longer using his $97,500 JetSmarter membership. 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. Exclusively featured by VUE Magazine (vuenj.com). For Petrossov, his vision is one that goes beyond mere name recognition and service. [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. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. Similar to advertising, if a company or executive are shown in a negative light, the product they are selling will likely suffer. How do you source your planes, staff and pilots? Founder and CEO of JetSmarter [37] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000. I moved to South Florida when I was 11 or 12. Petrossov was motivated to create companies in his teens . EMEA +44 20 7330 7500. People are becoming more and more interested in Sergey Petrossov because of how much money he makes. Because you cant when youre older., His other tip, which hes put to use himself, is simple. For more information visit: www.jetsmarter.com. 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. Continue with Recommended Cookies, Your email address will not be published. Also, today, in the tech age, luxury is transcending past brand to experience. That means a one way trip from New York to Los Angeles would cost more than $30,000. The buyer of the Lauderdale-based company that provides an Uber-for-jets service is Dubai-based Vista Global, Bloomberg reported this morning. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. JetSmarter was basically throwing cash on the fire and watching it burn. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. 2023 Celebrity Net Worth / All Rights Reserved. [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. What are the main differences between JetSmarter and its close competitors? this link is to an external site that may or may not meet accessibility guidelines. Often called " Uber " for private air travel, JetSmarter enables people to book. 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. JetSmarter set out to revolutionize jet travel.
