Often called " Uber " for private air travel, JetSmarter enables people to book. When he was a student at the University of Florida, he got exposed to computer science and joined a startup for live chatting. 2023 Forbes Media LLC. National team caps and goals, correct as of 19 November 2019. To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. It's 30-year-old founder is scrambling to explain himself. Basically, they are bullying anyone critical of the company. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. For Petrossov, his vision is one that goes beyond mere name recognition and service. What's next? What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Sergey Petrov - Player profile 22/23 | Transfermarkt 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. Get the latest sergey petrossov news, articles, videos and photos on the New York Post. 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. 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. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? JetSmarter Named In Class Action Lawsuit As Its CEO Sergey Petrossov The first beta version of the app was released in August 2012 to a closed group of private jet travelers. The company had no comment on The Verge reporting or Barsky's exit for this story. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Oh, and by the way, he borrowed the $97,500 from a friend, so he's still paying back the loan. [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". 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. 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 Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. Copyright 2023 New Statesman Media Group Ltd. Latest in Luxury - Sign up to our newsletter. After innovation, finding the best way to connect with the audience or the market is the surest way to success. Year: Net Worth: 2019: $19 Million : 2020: $19.5 Million: 2021: As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. In 2006, Sergey co-founded LiveContact, and in 2009 he co-founded a distance-learning solutions company called Federal Systems of Distance Education, which helped give Russian students access to pertinent educational materials. We spend a lot of time asking members to spread the word. The aim of the mobile app is to make travel fun, easy and convenient for our members. Its about personalization and what I call predictive hospitality. Consumers are turned off by processes that make it difficult for them to accomplish their goals. The question was: How was JetSmarter making ANY money off their flights? Whats your marketing strategy? [CDATA[ 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. Work stopped on Bezos' megamansion as his net worth drops by $57B She flew across the country in a Gulfstream IV 13 times. When the company started to come under fire, it used legal threats and lawsuits to silence its customers and the media. JetSmarter set out to revolutionize jet travel. Petrossov's family, however, profited handsomely. 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. EMEA +44 20 7330 7500. And down the road, we want to own premium business travel in the United States, he says. [CDATA[ brightcove.createExperiences(); And let's not forget Billy McFarland and the Fyre Festival debacle. Have news? Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? Paychecks were delayed four to five weeks. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. Its third round in 2016 raised $105 million and put the valuation of the startup at $1.5 billion. More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. 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. For many domestic flights I use our companys private jet offerings.. Through the investments, the organization is worth $1.5 billion. The company held champagne filled parties in Miami, Los Angeles, and New York to attract rich new members. We have to boil that down to them.. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. And so JetSmarter came to be, though not easily. 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. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. In March 2013, JetSmarter launched globally. The FBI is also investigating JetSmarter, specifically about the business and sources of cash, drug transportation, and the cash customers transported on JetSmarter flights. 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. How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. Trial and error drive progress and are at the heart of innovation. Private jet travel is more accessible than people think. He has a clear vision for what flying private should be, and he wont stop there. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. The 12 wealthiest people on the planet grew $36 . 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. His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. 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. Born in Moscow, Petrossov relocated to the United States with his family at the age of four. Yet more recently, JetSmarter has been plagued by numerous lawsuits, financial issues and negative press, all suggesting the business model wasnt working. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. 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. Airplanes could fly five to seven times more if they were efficiently run, he said. 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. Sergey Petrossov, CEO of JetSmarter | Financial Times Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. The company has a trail of angry customers and at least 13 lawsuits. He has a clear vision for what flying private should be, and he wont stop there. When expanded it provides a list of search options that will switch the search inputs to match the current selection. [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. [35] The company also partnered with Jet Edge and Air Hamburg to cater to its global community of private jet fliers. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. Sergey Petrossov is thus an ideal successful young entrepreneur. Sergey and Lolita lived in a $2 million house in a gated community in tony Boca Raton, Florida. Google [x], Rapid Evaluation Program Manager. [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. The catch-22 was that the more members the company signed up, the faster they burned through their investment money. With the price point and appeal of the luxury experience, the private aviation industry will grow enormously. Youd have only two to three people on an average airplane. Some flights have security dogs inspecting bags, but many have no security checks at all. Sergey Petrossov, Jetsmarter Inc: Profile and Biography The added costs of the flights made it too expensive for him. 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. Petrossov declined to say when JetSmarter would turn a profit. According to former employees, in 2016 and 2017, JetSmarter was losing $5 million a month. 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.
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