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We have also announced our series C funding raise of $105 million, at a $1.5 billion pre-money valuation, from existing and new strategic investors. 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. [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. Language links are at the top of the page across from the title. Galvez isn't the only JetSmarter customer with a grievance. He sees his app as not a premium product, but rather as providing value to consumers. Required fields are marked *. JetSmarter has reinvented private air travel by making it affordable and straightforward, doing away with what is considered an antiquated booking system in favor of a streamlined, technological alternative. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. 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. Some flights have security dogs inspecting bags, but many have no security checks at all. The question was: How was JetSmarter making ANY money off their flights? Sergey Petrossov - Board Advisor @ Vista Global - CrunchBase A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. I knew then that I wanted to start companies and tech was the field I wanted to be involved in. Through the investments, the organization is worth $1.5 billion. He filed a lawsuit against JetSmarter and its salesperson. Then different membership tiers debuted. How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. In other incidences, passengers and crew members have witnessed passengers using JetSmarter to transport drugs or large amounts of cash. JetSmarter was losing money hand over fist so it went through three investment rounds to raise cash. The hardest thing for a disruptive company is getting people to try it out. Terms of the transaction were not disclosed. He came up with the idea in 2008, when he graduated from the University of Florida. The startup Sergey wants to change the aviation business by making private flights accessible to the masses. 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. Sergey Petrossov and JetSmarter are Changing the Way We Fly [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. Where and how did you raise capital for the company? He plays as a right-back for FC Krasnodar. Thanks for reading! Its not every day that you see a 29-year-old at the helm of a billion-dollar company. Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. 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. If you truly believe in what youre doing, youll get there one way or another., Money Group, LLC Customers started accusing JetSmarter of bait and switch. 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. His departure made fundraising, which was growing more and more necessary, exceedingly more difficult. And, if they want, they can book a fully private flight, which comes with a higher cost. Learn more about how we make money. Sergey Petrossov is a serial entrepreneur and successful businessman. Meet the CEO of JetSmarter, the Uber of Private Jets | Money Follow @ndahlberg on Twitter and email ndahlbergbiz@gmail.com. If a friend says JetSmarter is the best, the trust factor goes up. It was a challenging way to get here. CNBC spoke to Joann Bachewicz from Lansing, Illinois. It required literally calling to book and signing papers. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. 7 calle 1, Suite 204 Sergey Petrossov. JetSmarter was losing about $22,000 on a shuttle flight between Los Angeles and New York. He says the company has annual revenues of over $200 million, meaning its top customers probably represent about two-thirds of its revenues. Thank you for subscribing to Elite Traveler. When JetSmarter debuted, it was touted as a disruptor in the aviation industry. [10][11] JetSmarter had offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale. JetSmarter faces lawsuits, losses and security questions - CNBC Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. In early 2016, it launched flights within Europe. How Much Would You Pay To Have Unlimited Flights Around The World Forever. I believe the future of travel is going to transcend the language of commodity.. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Instead, his focus is on creating a world-class, hospitality-driven experience. 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. We spend a lot of time asking members to spread the word. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. Pretend youre 80 years old and looking back on your lifehow would you feel if you didnt try anything? It supported chat for audio and video for website customer service. 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. The company had no comment on The Verge reporting or Barsky's exit for this story. The company had booths and VIP lounges at yacht shows, art fairs, and other places wealthy people gathered en masse. [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. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. Our average user visits JetSmarter 12 times daily. 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. After innovation, finding the best way to connect with the audience or the market is the surest way to success. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. A G4 costs more than $6,000 per hour to fly. Just go do it, he says. 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. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. Can the company ever be profitable without the all you can fly private jet memberships that made it famous and attracted thousands of customers? Americas +1 212 318 2000. [7][8] In August 2012, the beta version was launched and tested among a closed group of private aviation users. 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 . [2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). 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. In March 2013, JetSmarter launched globally. [29], In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year.