When it comes to private jets, you think Jay-Z flying for $60,000. Sergey Petrossov's Sky-High Ambitions - Yahoo Finance 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. 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. A G4 costs more than $6,000 per hour to fly. More from Forbes 30 Under 30 - Consumer Technology 2016 List. The buyer of the Lauderdale-based company that provides an Uber-for-jets service is Dubai-based Vista Global, Bloomberg reported this morning. He initially resided in California and later moved to Florida, where he continues to live today. 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. Your education and upbringing? Whats your marketing strategy? Similar to advertising, if a company or executive are shown in a negative light, the product they are selling will likely suffer. Kim Kardashian, Kanye West, and DJ Khaled are customers of JetSmarter. 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. Sergei Andreyevich Petrov ( Russian: ; born 2 January 1991) is a Russian football player. In fact, they were even cheaper than flying first class on commercial airlines. JetSmarter Named In Class Action Lawsuit As Its CEO Sergey Petrossov Support. But the app still requires convincing. 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.. 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. All while avoiding the hassle and headache of airport security screenings. 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.. Required fields are marked *. I moved to South Florida when I was 11 or 12. Theres no effect on the business., There has, however, also been a management shuffle among the chief financial officers over the past year. Our goal is to one day make all air travel private. 7 calle 1, Suite 204 Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. It is expected to close in the second quarter. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. The company had no comment on The Verge reporting or Barsky's exit for this story. He spends some days speaking with stakeholders while other days are spent meeting clients demands. Jul 10, . Sergey Petrossov - Board Advisor @ Vista Global - CrunchBase Codispoti said by email that he joined JetSmarter as CFO in October. Over the years, JetSmarter has attracted investments from Jay-Z, the Saudi Royal family, and execs from Twitter and Goldman Sachs. It said it would use the money to expand services, including routes and flight frequency.[23]. Russia. How did the journey with JetSmarter begin? JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. Not just by the luxury but by how complicated and archaic the process of booking it could be. 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. This is just a sample. [CDATA[ Then the company started charging members extra money for longer flights. 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. The startup Sergey wants to change the aviation business by making private flights accessible to the masses. Vista Global, owner of VistaJet and XOJET, will immediately benefit from JetSmarters industry-leading technology platform that will ease the booking process for VistaJet customers, according to a Forbes report. Save my name, email, and website in this browser for the next time I comment. // < ! Language links are at the top of the page across from the title. Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. 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 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. This page was last edited on 13 April 2023, at 03:18. Thats the most important thing for entrepreneurs. It was also investing a ton of money on marketing and events. 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. When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. The hardest thing for a disruptive company is getting people to try it out. How do you source your planes, staff and pilots? More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. Without trial, there is no error, and without error, there is no improvement. Contact me at ndahlbergbiz@gmail.com. My membership meant nothing anymore. He is seeking a refund and damages. 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. That means a one way trip from New York to Los Angeles would cost more than $30,000. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. 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. He plays as a right-back for FC Krasnodar. JetSmarters goal is not only to make it easier for people to fly in luxury. The flight eventually continued to New York. (Epstein declined to comment.). This button displays the currently selected search type. When I was 18, I wasnt really into college that much I was more interested in getting out of college and I got involved with my first startup. The planes werent being utilized enough. 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. 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. What was your vision for the mobile app? How did the journey with JetSmarter begin? Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. The JetSmarter app is available for iOS and Android download in the iTunes store or Google Play store. But its not just about the brand. Petrossov has not responded to my request for an interview. 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 Fort Lauderdale, Florida based company opened offices in London, Zurich, Moscow, Dubai, and Saudi Arabia. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. Private jet travel is more accessible than people think. The aim of the mobile app is to make travel fun, easy and convenient for our members. We have to do that for the traditional private flyer whos not used to sharing an airplane. 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. CNBC spoke to Sally Horchow, a Los Angeles-based Broadway producer who travels frequently to New York. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. Where and how did you raise capital for the company? As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. Clearlake Capital and Jeffries Capital finally made an investment in JetSmarter rumored to be around $75 million for one third of the company. Sergey Petrossov: Founder, Chairman & CEO of JetSmarter 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. 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. Take as much risk as you can when youre young. How do you source your planes, staff and pilots? 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. As a renowned principal, Sergey is always finding manners to innovate different industries. We think about three pillars: how you get there, who you meet and where you go. When he was a student at the University of Florida, he got exposed to computer science and joined a startup for live chatting. Sergey Petrossov. 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. Petrossov declined to say when JetSmarter would turn a profit. JetSmarter CEO Sergey Petrossov's Sky-High Ambitions JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. Strategies for Business Growth and Productivity. 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. Sergey Petrossov. 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. The business news channel also published a letter from JetSmarter's general counsel attempting to quash its investigation. 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? 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. There are also concerns over security. Petrossov knows this, which is why he takes his time to build his professional relationships and the JetSmarter brand. 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. Petrossov was motivated to create companies in his teens What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. 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. Sergey wants to change the aviation business by making private flights accessible to the masses. 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. He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. He jumped at the chance to purchase the longer deal. 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. Does that sound familiar? What was your background prior to JetSmarter? The hardest thing for a disruptive company is getting people to try it out. Customers started accusing JetSmarter of bait and switch. 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. Learn more about how we make money. 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. Offers may be subject to change without notice. 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. We used this funding to expand our JetShuttle offerings and continue to expand globally. [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". He put its revenue in the hundreds of millions, which he hops to double in the next two years. It is this small switch in outlook that the customers needs are paramount, that can make a big difference. 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 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. What was your vision? JetSmarter aggregates. Innovating For The Mass Affluent: A Q&A With JetSmarter CEO Sergey 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. After collaborating with hundreds of vendors and recruiting a team with a combined experience of more than 100 years in private air travel, the JetSmarter app was officially released in March 2013. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. Where and how did you raise capital for the company? [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. 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. // ]]> JetSmarters own Safety Audit Committee analyzes the procedures of all primary operators in the JetSmarter program. What was your vision? 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 Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Membership swelled to about 10,000. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". Google [x], Rapid Evaluation Program Manager. In fact, it is making money on some flights. 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. We are continually looking at ways and means to expand our offerings within the region, and globally. Some flights have security dogs inspecting bags, but many have no security checks at all. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. 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. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. 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. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. https://money.com/jetsmarter-uber-private-jets-ceo/. The flights Horchow took were a fraction of the cost of other private jet companies. If it is found in violation, JetSmarter could be levied with large fines or possibly even shutdown. What are the main differences between JetSmarter and its close competitors? JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. 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. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. Also, today, in the tech age, luxury is transcending past brand to experience. 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.