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. Sergey Petrossov is a successful businessman and entrepreneur. 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? Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? [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. Sergey Petrossov is a serial entrepreneur and successful businessman. Hes had that spirit, he says, since his teens. 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. 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. Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. 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. Education After graduating from high school, Petrossov studied finance at the University of Florida. (1) *Club domestic league appearances and goals, correct as of 23 April 2023. Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. For him, it seems innate. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. Born in Moscow, Petrossov relocated to the United States with his family at the age of four. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). Save my name, email, and website in this browser for the next time I comment. Does that sound familiar? Dorado, PR 00646, Metro Office Park Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. What. In high school, he attempted to start an import-export business for automobile tire rims. Partnerships included Pernod Ricard,[33] Vertis Aviation,[34] and SportStar Relocation. JetSmarter was the first "flying unicorn," with a valuation of more than $1 billion. His wife Lolita ran the day to day business as its CEO. Also, today, in the tech age, luxury is transcending past brand to experience. 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. [39] So JetSmarter makes empty seats available via its app to anyone looking to jet quickly to their next destination for a price. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. The charges were related to a former business, not JetSmarter. The first beta version of the app was released in August 2012 to a closed group of private jet travelers. The company was headquartered in Fort Lauderdale, Florida, United States. The entrepreneur who changed how the world sees Russia How Sergey Author Recent Posts Follow me Nancy Dahlberg You can update your choices at any time in your settings. It turned out that flight wasn't free as promised. Petrossov was shocked at how out-dated the entire booking processes seemed, and he figured that the whole experience could be streamlined via technology. JetSmarter is not taking the criticism from customers and former employees lying down. [35] The company also partnered with Jet Edge and Air Hamburg to cater to its global community of private jet fliers. Through the investments, the organization is worth $1.5 billion. What was your vision? Top 3 Mistakes Car Buyers Make During Lockdown - LinkedIn The letter accused CNBC of "tortuously interfering with JetSmarter's contractual relationships.". Petrossov formed relationships in aviation by going to trade shows. 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. 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. It supported chat for audio and video for website customer service. The company charters them or books space on them from other companies. Sergey Petrossov and JetSmarter are Changing the Way We Fly [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. This is just a sample. The added costs of the flights made it too expensive for him. 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. That membership goes for $50,000 a year. Trial and error drive progress and are at the heart of innovation. Serge y Petrossov is the founder and CEO of JetSmarter When JetSmarter debuted, it was touted as a disruptor in the aviation industry. Offers may be subject to change without notice. Take as much risk as you can when youre young. In the private aviation industry, many are familiar with jet cards or fractional jet ownership, where a light to mid-sized jet card can cost one anywhere from $130,000 to $150,000 a year for 25 hours worth of flying. Still, despite JetSmarter's aggressive legal bullying, a number of former members have joined a class action lawsuit against the company. 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. There was no digital form in accessing it. 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. [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. Experienced Entrepreneur. Google [x], Rapid Evaluation Program Manager. Petrossov declined to say when JetSmarter would turn a profit. In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. These days, JetSmarter no longer sells memberships. Learn more about how we make money. JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. 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 April 2018, JetSmarter was valued at $1.5 billion and had 15,000 subscribers who paid a minimum of $5,000 a year to book flights and share seats on flights on private jets via the company's app. According to former employees, in 2016 and 2017, JetSmarter was losing $5 million a month. Save time and get . His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. Then the company started charging members extra money for longer 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. CNBC spoke to Joann Bachewicz from Lansing, Illinois. I wasnt the founder but since I got involved early they called me a co-founder. 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. Most Innovative Private Jet Providers of the 21st Century - Elite Traveler One of the most essential aspects that move a business forward is the errors that happen along the way. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. Many companies featured on Money advertise with us. Anthony Pompliano Net Worth Phone Number, House Address, Wiki, Ashley Massengill Net Worth | Bio, Family, Address, Career, Atlas Monroe Net Worth | Age, Height, Weight, Dating And More, Beyonce S Net Worth Phone Number, House Address, Wiki, Blue Ivy Net Worth Phone Number, House Address, Wiki. 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. Members are able to book private jets in a matter of minutes, right from the palm of their hand. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. Sergey Petrossov. This story was updated throughout the day. (Epstein declined to comment.). this link is to an external site that may or may not meet accessibility guidelines. If a friend says JetSmarter is the best, the trust factor goes up. [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. Not just by the luxury but by how complicated and archaic the process of booking it could be. Its no longer about the brand, marketing and brand association. You heard it here first. If you truly believe in what youre doing, youll get there one way or another., Money Group, LLC What was your vision for the mobile app? 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. Its like a country club that follows you around, Petrossov said. Your email address will not be published. The question was: How was JetSmarter making ANY money off their flights? Without trial, there is no error, and without error, there is no improvement. The idea was so simple it seemed impossible that someone hadn't thought about it before. Have news? Thats a shift. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. Contact me at ndahlbergbiz@gmail.com. Jet Life: Sergey Petrossov - LinkedIn It was highly inefficient. 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: Founder, Chairman & CEO of JetSmarter Paychecks were delayed four to five weeks. Whats your marketing strategy? This page was last edited on 13 April 2023, at 03:18. Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. 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. "Steep Fees and First-Class Prices, but Private Jets Are Available to More", "JetSmarter Is Uber for Affordable Private Jets", "South Florida's flourishing private jet market attracts new entrants", "Fancy a quick getaway? [10][11] JetSmarter had offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. We are continually looking at ways and means to expand our offerings within the region, and globally. www.vistaglobal.com. Download JetSmarter. The problem is, he was the key person dealing with the company's investors. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Petrossov was motivated to create companies in his teens Yep, JetSmarter had changed its terms and conditions again. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. JetSmarter faces lawsuits, losses and security questions - CNBC He decided to organize planes in a digital fashion with high utilization and a lower cost of entry.. 1,302 likes. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. I am a writer and editor with extensive media experience and a passion for journalism and serving the community. He plays as a right-back for FC Krasnodar. 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. 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. [28] Adding to its services, the company offered helicopter transfers in select cities. 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. 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. Because you cant when youre older., His other tip, which hes put to use himself, is simple. [30], JetSmarter partnered with various air carriers that span the range of the private charter industry. He was told he'd have to pay 75% of the cost of his flight. I believe the future of travel is going to transcend the language of commodity.. JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. 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. 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. We used this funding to expand our JetShuttle offerings and continue to expand globally. 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. [39] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. He put its revenue in the hundreds of millions, which he hops to double in the next two years. 5. For more information, read, How to Switch Careers Even if You Think It's Impossible, Your Resume Probably Needs a Pandemic Makeover. Youd have only two to three people on an average airplane. And let's not forget Billy McFarland and the Fyre Festival debacle. 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. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. Meet the CEO of JetSmarter, the Uber of Private Jets | Money Sergei Petrov - Wikipedia 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. 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. Empty-leg flight deals, or repositioning flights. It is a misconception that privatization is for the wealthiest one percent. Strategies for Business Growth and Productivity. 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. How do you source your planes, staff and pilots? After his first exposure to private jet travel when a fellow business owner took him aboard one, Petrossov noticed surprising inefficiencies. Back in the early days, a JetSmarter membership also included free helicopter service to its airports and catering on the flights. Sergey Petrossov, Advisor, XO JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. JetSmarter - Wikipedia He has a clear vision for what flying private should be, and he wont stop there. Members are able to book private jets in a matter of minutes, right from the palm of their hand. JetSmarter Named In Class Action Lawsuit As Its CEO Sergey Petrossov Having visited more than 30 countries, Petrossov named New York City as his favorite travel destination and Hong Kong as the next stop on his list. This tailored approach seems to be working. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. When CNBC contacted former and current employees for their investigation, they received a cease and desist from JetSmarter. Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team was based. Basically, they are bullying anyone critical of the company. The hardest thing for a disruptive company is getting people to try it out. For more information visit: www.jetsmarter.com. While attending the University of Florida, he became involved with his first tech start-up, which lit a passion in him. He noted that the company had recently added access to 8,000 luxury homes (and villas) to its system. The flight eventually continued to New York. 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. There are approximately 22,000 private flights every single day in the United States, and one-third of them are empty. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. What are JetSmarters expansion plans for the future? // < ! 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. World's 12 Wealthiest People Got $36 Billion Richer in a Single Day A G4 costs more than $6,000 per hour to fly. Petrossov is most known for founding JetSmarter, a technology company It was the easiest money I ever lost in my life.". And down the road, we want to own premium business travel in the United States, he says. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. My membership meant nothing anymore. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. 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 . Here's Where to Start, 6 Random Job Skills Employers Are Looking for in the Covid Era, 5 Time Management Tips That Will Make You More Money, How to Pay Off Debt Even If You Just Lost Your Job, Meet the 29-Year-Old CEO Who Turned His Hobby Into a $1.5 Billion Business That's Backed by Jay-Z. In March 2013, JetSmarter launched globally. 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. 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. A few weeks later, Galvez tried to book a JetSmarter flight. The company is still not profitable but it isn't losing as much money on flights. 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. Like Uber, Lyft, and AirBnb, who don't own the cars or properties they peddle, JetSmarter does not own the planes. The company had no comment on The Verge reporting or Barsky's exit for this story. 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. The hardest thing for a disruptive company is getting people to try it out. 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. Required fields are marked *. Sergey Petrossov, CEO of JetSmarter | Financial Times The company also said it was providing integration via SAP Concur to attract more corporate travel business. Primary Menu Sections. Sergey Petrossov and JetSmarter are Changing the Way We Fly Petrossovs career as an entrepreneur has been finding those difficult processes and making them simple and more accessible. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. 4 "Sergey Petrossov" profiles | LinkedIn In early 2016, it launched flights within Europe. And so JetSmarter came to be, though not easily. The buyer of the Lauderdale-based company that provides an Uber-for-jets service is Dubai-based Vista Global, Bloomberg reported this morning. These airplanes are severely under-utilized by flying only 200 hours a year when they could be flying 1,200 hours. Jul 10, . He initially resided in California and later moved to Florida, where he continues to live today. Your education and upbringing? Our average user visits JetSmarter 12 times daily. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Theres no effect on the business., There has, however, also been a management shuffle among the chief financial officers over the past year. [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. Many private jets flying the friendly skies are empty or nearly so. 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. By this time, however, he no longer practiced business. 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. LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and (except on the iOS app) to show you relevant ads (including professional and job ads) on and off LinkedIn. Jay-Z's Private Jet Startup "JetSmarter" Just Raised $105 Million In Series C Funding, Jay-Z And Saudi Royalty Invest In 'Uber For Private Jets' App. To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. She flew across the country in a Gulfstream IV 13 times. JetSmarters goal is not only to make it easier for people to fly in luxury. And, if they want, they can book a fully private flight, which comes with a higher cost. Still, the company and its founder, Sergey Petrossov, did a lot to pave the way for future by-the-seat and sharing models. Sergey wants to change the aviation business by making private flights accessible to the masses.
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