Also included for JetSmarter members are complimentary helicopter services, with free transfers to and from New York area airports. And down the road, we want to own premium business travel in the United States, he says. He jumped at the chance to purchase the longer deal. How do you source your planes, staff and pilots? It is a misconception that privatization is for the wealthiest one percent. Sergey Petrossov: JetSmarter's Youngest CEO and - Eddusaver In March 2013, JetSmarter launched globally. 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. Can the company ever be profitable without the all you can fly private jet memberships that made it famous and attracted thousands of customers? 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 and JetSmarter are Changing the Way We Fly 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. ", "JetSmarter faces lawsuits, losses and security questions", https://en.wikipedia.org/w/index.php?title=JetSmarter&oldid=1149578250, Companies based in Fort Lauderdale, Florida, Ridesharing companies of the United States, All Wikipedia articles written in American English, Creative Commons Attribution-ShareAlike License 3.0, Sergey Petrossov (CEO), Gennady Barsky (President). Its about personalization and what I call predictive hospitality. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. 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. With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. The hardest thing on the demand side, he says, is to change consumer behavior. It projected that membership would grow from 5,839 in 2016 to more than 100,000 in 2019. Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. Sergey Petrossov, entrepreneur | World Biographical Encyclopedia - Prabook 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. Pretend youre 80 years old and looking back on your lifehow would you feel if you didnt try anything? 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. You have this multibillion-dollar industry that was completely analogue, he says. National team caps and goals, correct as of 19 November 2019. Continue with Recommended Cookies, Your email address will not be published. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. JetSmarter was a corporation and mobile application for private jet users. Members are able to book private jets in a matter of minutes, right from the palm of their hand. The current CFO is Edward Codispoti, who had previously been chief financial officer at TradeStation. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. Mark Zuckerberg. Sergey Petrossov Net Worth - Phone Number, House Address, Wiki Sergei Petrov - Wikipedia This tailored approach seems to be working. (1) *Club domestic league appearances and goals, correct as of 23 April 2023. Its no longer about the brand, marketing and brand association. Members are able to book private jets in a matter of minutes, right from the palm of their hand. The main reason I was interested in Torossian's employment as a PR agent for Turkey is that there was a similar situation with Barry Zorthian, who worked from Oct. 1980 to February 1984 for the lobbying firm of Gray and Co., hired . According to former employees, in 2016 and 2017, JetSmarter was losing $5 million a month. Airplanes could fly five to seven times more if they were efficiently run, he said. 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? 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. Petrossov declined to say when JetSmarter would turn a profit. JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. JetSmarter, once a high-flying unicorn, is being acquired Its about personalization and what I call predictive hospitality. Petrossov's family, however, profited handsomely. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. [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. 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. 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. We spend a lot of time asking members to spread the word. He was told he'd have to pay 75% of the cost of his flight. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. A year later, JetSmarter needed more cash. JetSmarter Named In Class Action Lawsuit As Its CEO Sergey Petrossov 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. 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 September 2016, then-Florida Gov. Youd have only two to three people on an average airplane. 4 "Sergey Petrossov" profiles | LinkedIn Is this another Elizabeth Holmes or Billy McFarland situation or did JetSmarter expand too quickly? Sergey Petrossov is a serial entrepreneur and successful businessman. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). When youre young, those are the years you can take the most risks. The membership agreements customers signed barred them from making any negative comments about the company or its executives in any way something that is very unusual in the aviation industry. JetSmarter was losing money hand over fist so it went through three investment rounds to raise cash. [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. 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. During his research, he also discovered that about 70 percent of all private jets were empty and the majority of their flight hours were spent traveling to pick up the next passenger, not flying the passenger themselves. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near 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. Asia Pacific +65 6212 1000. Our average user visits JetSmarter 12 times daily. The planes werent being utilized enough. He graduated in 2009. What was your vision? 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. 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. But its not just about the brand. It was the easiest money I ever lost in my life.". Required fields are marked *. 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. 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. Education After graduating from high school, Petrossov studied finance at the University of Florida. But guess what happened when she and other new sophisticated members tried to book flights? Lots 81-82 Street C A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. 15 local leaders selected as GET Cities Champions for gender equity in tech. [28] Adding to its services, the company offered helicopter transfers in select cities. Some flights have security dogs inspecting bags, but many have no security checks at all. What was your background prior to JetSmarter? To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. After paying nearly $90,000 for memberships, they were being told they had to pay more to actually USE their memberships. Petrossov knows this, which is why he takes his time to build his professional relationships and the JetSmarter brand. JetSmarter was basically throwing cash on the fire and watching it burn. 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. Basically, they are bullying anyone critical of the company. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. 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. [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. The startup Sergey wants to change the aviation business by making private flights accessible to the masses. Posts Videos Tagged. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. In fact, it is making money on some flights. The company has a trail of angry customers and at least 13 lawsuits. People are becoming more and more interested in Sergey Petrossov because of how much money he makes. He sees his app as not a premium product, but rather as providing value to consumers. So far, there is no announcement on the JetSmarter website. In February of 2017, the companys president Edward Barsky resigned after he was arrested on charges of grand theft, although Petrossov said the incident was not related to his work for JetSmarter. All Rights Reserved. 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. Even if that cost is divided by eight to 10 passengers, JetSmarter was losing money. But its not just about the brand. 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. JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. 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. By clicking "TRY IT", I agree to receive newsletters and promotions from Money and its partners. It is expected to close in the second quarter. JetSmarter still has to deal with inquiries from the FAA. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. Oh, and by the way, he borrowed the $97,500 from a friend, so he's still paying back the loan. His advice to millennials like him who want to create companies is to be bold sooner rather than later. What was your vision for the mobile app? Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? A few weeks later, Galvez tried to book a JetSmarter flight. Your education and upbringing? 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. An example of data being processed may be a unique identifier stored in a cookie. [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. I fly three or four times a month, usually three domestic flights and one international flight, said Petrossov. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. The 12 wealthiest people on the planet grew $36 . JetSmarter was founded by Moscow-born Sergey Petrossov, who moved to South Florida as a teen, graduated from the University of Florida and launched JetSmarter in 2012 when he was in his early 20s. JetSmarter is not taking the criticism from customers and former employees lying down. 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. Intrigued and determined to find a way to make the private flight experience much more convenient, he started researching the industry and formulating solutions. 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. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. this link is to an external site that may or may not meet accessibility guidelines. 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. 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. Is the CEO of Turkey's Newest U.S. PR Firm Really Armenian? How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing Petrossov was motivated to create companies in his teens 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. Sergey Petrossov - Forbes Private jet travel is more accessible than people think. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. Most of my career has been spent with the Miami Herald in business news, and my expertise is writing about tech and entrepreneurs. Now people from all walks of life have started evaluating his merits. The shuttles were a big success. [39] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. And, if they want, they can book a fully private flight, which comes with a higher cost. It was also investing a ton of money on marketing and events. In season, helicopter shuttles to the Hamptons from Manhattan are available as well. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. Whats your marketing strategy? We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. In 2016 it started eliminating the free helicopter service as well as catering on the flights. Our goal is to one day make all air travel private. 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. One of the most essential aspects that move a business forward is the errors that happen along the way. Galvez is no longer using his $97,500 JetSmarter membership. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. 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. [CDATA[ brightcove.createExperiences(); As a renowned principal, Sergey is always finding manners to innovate different industries. A G4 costs more than $6,000 per hour to fly. 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. [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. All while avoiding the hassle and headache of airport security screenings. Trial and error drive progress and are at the heart of innovation. 5. But the app still requires convincing. Galvez isn't the only JetSmarter customer with a grievance. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". Instead it acts as a middleman between private jets and passengers looking for seats. Membership swelled to about 10,000. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. 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 world's 12 wealthiest people got richer by $36 billion in a day - and have now gained $264 billion in net worth this year. You heard it here first. Primary Menu Sections. A Luxury Guide to a Long Weekend in Istanbul, Sjefke Jansen on His New Role as GM of Anantara Kihavah, Le Commandant Charcot: The Worlds Only Luxury Icebreaker, The McLaren Paddock Club: Feel the Beating Heart of Formula 1. The company held champagne filled parties in Miami, Los Angeles, and New York to attract rich new members. He is a Forbes-ranked billionaire, with an estimated net worth of $2.3 billion. 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. 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.
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