This tailored approach seems to be working. 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.. Support. What are the main differences between JetSmarter and its close competitors? 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 . Much of that experience comes from team members time with NASA, Nokia, Microsoft, Mercedes Benz, BMW, and Uber. 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. I dont know. We offer travel experience packages, ranging from experiences with luxury brands like Dom Prignon, to exclusive access to VIP events. It supported chat for audio and video for website customer service. And so JetSmarter came to be, though not easily. Elizabeth Holmes set out to revolutionize blood testing with Theranos. 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 Young Economics & Finance Graduate With Marketing Experience Interested In Data Analytics Field Published Jun 28, 2020 + Follow Do you feel like pulling your hair out because you . But the app still requires convincing. Innovating For The Mass Affluent: A Q&A With JetSmarter CEO Sergey 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. I went to the University of Florida and studied finance. There are approximately 22,000 private flights every single day in the United States, and one-third of them are empty. In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. (1) *Club domestic league appearances and goals, correct as of 23 April 2023. The letter accused CNBC of "tortuously interfering with JetSmarter's contractual relationships.". It was highly inefficient. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. She flew across the country in a Gulfstream IV 13 times. We have raised funding from private sources including the royal family in the Kingdom of Saudi Arabia, A-league executives, music moguls, and more. The aim of the mobile app is to make travel fun, easy and convenient for our members. 2023 Celebrity Net Worth / All Rights Reserved. Were still educating. In December, it garnered a giant $105 million round of financing that pushed the private companys valuation to $1.5 billion. 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. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. [29], In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. Mass affluent want a one-stop-shop for all three, and thats what we strive to offer. The consent submitted will only be used for data processing originating from this website. It projected that membership would grow from 5,839 in 2016 to more than 100,000 in 2019. The Fort Lauderdale, Florida based company opened offices in London, Zurich, Moscow, Dubai, and Saudi Arabia. These airplanes are severely under-utilized by flying only 200 hours a year when they could be flying 1,200 hours. [37] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000. Basically, they are bullying anyone critical of the company. 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 first time Sergey Petrossov flew on a private jet in 2009, he was surprised. Your education and upbringing? The private aviation industry is highly inefficient, and Petrossov has built JetSmarter to bring efficiency and a younger customer-base in, ushering the industry into the 21st century. 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. Top 3 Mistakes Car Buyers Make During Lockdown - LinkedIn Members are able to book private jets in a matter of minutes, right from the palm of their hand. 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. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". Opinions are our own, but compensation and in-depth research determine where and how companies may appear. Contact me at ndahlbergbiz@gmail.com. Education After graduating from high school, Petrossov studied finance at the University of Florida. He initially resided in California and later moved to Florida, where he continues to live today. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. [CDATA[ After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. A G4 costs more than $6,000 per hour to fly. The main difference between JetSmarter and its close competitors is that JetSmarter gives members the flexibility to create flights on their time or find seats on flights created by fellow members all with the year-round reliability, efficiency, and service that are synonymous with flying private. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Similar to advertising, if a company or executive are shown in a negative light, the product they are selling will likely suffer. I think some people just have drive and passion for what theyre doing. 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. [CDATA[ brightcove.createExperiences(); The added costs of the flights made it too expensive for him. The company had no comment on The Verge reporting or Barsky's exit for this story. The company was offering him its "sophisticated membership," which included unlimited, free private jet flights with a companion pass. 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. Often called " Uber " for private air travel, JetSmarter enables people to book. The 12 wealthiest people on the planet grew $36 . 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. 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. The plane made an emergency landing in Nebraska and Paola was removed from the plane and arrested. Petrossov, a native of Russia and graduate of the University of Florida, had been involved with two tech startups before launching JetSmarter in 2013. I went to the University of Florida and studied finance. Today, the company is mired in lawsuits and worth about a fifth of that $1.5 billion. Dont give up, he says. Select Accept to consent or Reject to decline non-essential cookies for this use. If a friend says JetSmarter is the best, the trust factor goes up. Paychecks were delayed four to five weeks. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. Members also have access to free last-minute flights on empty legs. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. Its not every day that you see a 29-year-old at the helm of a billion-dollar company. JetSmarter has not been without its hiccups. Sergey Petrossov Net Worth - Phone Number, House Address, Wiki 5. I moved to South Florida when I was 11 or 12. Your education and upbringing? 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. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. More importantly, without trial and error, there is no innovation and, ultimately, no advancement or progress. Dorado, PR 00646, Metro Office Park Airplanes could fly five to seven times more if they were efficiently run, he said. 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. Now people from all walks of life have started evaluating his merits. Sergey Petrossov - Chief Growth & Digital Officer - LinkedIn Petrossov's biggest success to date, however . Customers started accusing JetSmarter of bait and switch. And let's not forget Billy McFarland and the Fyre Festival debacle. Have news? JetSmarter makes private air travel accessible through a mobile app that seamlessly connects travelers to private jets at competitive fares around the world. 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. 7 calle 1, Suite 204 In high school, he attempted to start an import-export business for automobile tire rims. Also, today, in the tech age, luxury is transcending past brand to experience. But forJetSmarterFounder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). JetSmarter CEO Sergey Petrossov's Sky-High Ambitions [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. For Petrossov, his vision is one that goes beyond mere name recognition and service. 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 How Much Would You Pay To Have Unlimited Flights Around The World Forever. 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. The catch-22 was that the more members the company signed up, the faster they burned through their investment money. Sergey Petrossov - Board Advisor @ Vista Global - CrunchBase All Rights Reserved. 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. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. So far, there is no announcement on the JetSmarter website. He has a clear vision for what flying private should be, and he wont stop there. Jet Life: Sergey Petrossov - VUE magazine Petrossov was motivated to create companies in his teens When JetSmarter debuted, it was touted as a disruptor in the aviation industry. [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. Were still in the early days.. If you enjoy our content, support us by becoming a paid subscriber. 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. 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. In March 2013, JetSmarter launched globally. In 2016 it started eliminating the free helicopter service as well as catering on the flights. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. Trial and error drive progress and are at the heart of innovation. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics. An example of data being processed may be a unique identifier stored in a cookie. Other have filed consumer fraud lawsuits against JetSmarter, with many seeking seven figure damages. 135 following. The company has also been known to sue journalists for writing articles critical of the company if they do not take down the article. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. The startup Sergey wants to change the aviation business by making private flights accessible to the masses. 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. Sergey is most known for founding JetSmarter. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. 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. As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. 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. Strategies for Business Growth and Productivity. Whats your marketing strategy? What began as an idea in 2012 has now become the world's largest private aviation travel and lifestyle community. 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. 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 (@sergey) Instagram photos and videos That investment gives JetSmarter a valuation of less than $250 million, a plummet of more than 80% from the earlier more than one-billion dollar valuation. Its no longer about the brand, marketing and brand association. As a renowned principal, Sergey is always finding manners to innovate different industries. At the time, mobile marketplaces were becoming popular, and he saw a chance to apply that idea . 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. 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. 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. 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. JetSmarter CEO Sergey Petrossov Says Ex-President's Arrest Has 'No We have to boil that down to them.. Its unfortunate, but it has nothing to do with the company, Petrossov told FORBES in a telephone interview. 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? A year later, JetSmarter needed more cash. 10.5K followers. 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. In reality, the company was losing millions of dollars a month and not delivering on promises to customers and investors. Sergey Petrossov. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. Sergei Andreyevich Petrov ( Russian: ; born 2 January 1991) is a Russian football player. [39] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. Thanks for reading! Theres no effect on the business., There has, however, also been a management shuffle among the chief financial officers over the past year. Sergey Petrossov - Facebook He is seeking a refund and damages. As part of the Vista Global transaction, all JetSmarter investors, including Clearlake Capital and Jefferies Financial, will become investors in Vista Global. He noted that the company had recently added access to 8,000 luxury homes (and villas) to its system. Petrossov declined to say when JetSmarter would turn a profit. [13], On September 5, 2018, a JetSmarter shared charter flight from Las Vegas to New York had to make an emergency landing in North Platte, Nebraska, after a passenger threatened other passengers and the crew. 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. 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. Im taking on a little extra responsibility, he said. 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 . JetSmarter was founded in 2012 by entrepreneur Sergey Petrossov,[5][6] whose idea made him one of Forbes' "30 Under 30" business leaders of 2016. But for JetSmarter Founder and CEO, Sergey Petrossov, its just another day at the office (or in the skies). His goal has always been to have in own company and while still in college, he . Petrossov has not responded to my request for an interview. Yep, JetSmarter had changed its terms and conditions again. The company also said it was providing integration via SAP Concur to attract more corporate travel business. Sergey Petrossov, Jetsmarter Inc: Profile and Biography Many companies featured on Money advertise with us. What are the main differences between JetSmarter and its close competitors? Because you cant when youre older., His other tip, which hes put to use himself, is simple. JetSmarters goal is also to utilize those passenger-free flight hours and fill them. And down the road, we want to own premium business travel in the United States, he says. The company was headquartered in Fort Lauderdale, Florida, United States. Where and how did you raise capital for the company? He spends some days speaking with stakeholders while other days are spent meeting clients demands. 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. Exclusively featured by VUE Magazine (vuenj.com). The company charters them or books space on them from other companies. The company faces unknown costs from the lawsuits and refunds, the class action lawsuit, and the outcome of the investigations by the FAA and FBI. Lets meet them, AirOps raises $7M to bring the power of AI to the workplace, Tech Talent Coalition workgroup aims to expand training and hiring opportunities for our local diverse talent, Say goodbye to in-person tours: Check out a home for sale from the comfort of metaverse startup Propyverse, At packed Venture Miami Tech Hiring Fair, breadth and depth of Miami movement on full display. The main difference between JetSmarter and its close competitors is that JetSmarter gives members the flexibility to create flights on their time or find seats on flights created by fellow members all with the year-round reliability, efficiency, and service that are synonymous with flying private. The company is still not profitable but it isn't losing as much money on 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? Thats a shift. 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 with top-rated private jet operators. 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. Kim Kardashian, Emily Ratajkowski and David Ortiz were paid to be brand ambassadors. For the record, JetSmarter's membership agreement states that the company can "change, suspend, or terminate" services or benefits at any time. But that has raised concerns for some of JetSmarter's customers. (Epstein declined to comment.). Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team was based. For more information visit: www.jetsmarter.com. This achievement has led to his being one of the worlds wealthiest men. JetSmarter declined to comment on CNBC's inquiries, but said in a statement that "changes to our member services and benefits were within the rights of our membership agreement." After his first exposure to private jet travel when a fellow business owner took him aboard one, Petrossov noticed surprising inefficiencies. Sergey Petrov, 32, from Russia FK Krasnodar, since 2012 Right-Back Market value: 1.00m * Jan 2, 1991 in St. Petersburg, UdSSR As Galvez told CNBC: "My heart dropped. JetSmarter set out to revolutionize jet travel. After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. 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. Just go do it, he says. [31][32] Sergey Petrossov | New York Post 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. Sergey Petrossov is thus an ideal successful young entrepreneur. Mark Zuckerberg. The entrepreneur who changed how the world sees Russia How Sergey Serge y Petrossov is the founder and CEO of JetSmarter 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. 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. Thank you for subscribing to Elite Traveler. Petrossov said that he hopes to expand internationally JetSmarter has offices in London, Zurich and Dubai and to add new services, from lodging to restaurants, that it can serve up to its well-heeled clientele. "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? The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Private jet travel is more accessible than people think. We think about three pillars: how you get there, who you meet and where you go. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. Membership swelled to about 10,000. 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. How do you source your planes, staff and pilots? Sergey Petrossov serves as the Chief Executive Officer of JetSmarter. His wife Lolita ran the day to day business as its CEO. How Sergey Petrossov, JetSmarter's Founder and CEO, is Revolutionizing 15 local leaders selected as GET Cities Champions for gender equity in tech. Sergey Petrossov, Advisor, XO 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. More from Forbes 30 Under 30 - Consumer Technology 2016 List. A few weeks later, Galvez tried to book a JetSmarter flight. We used this funding to expand our JetShuttle offerings and continue to expand globally. Submit a correction suggestion and help us fix it! Get an inside vue on the latest in luxury. Instead it acts as a middleman between private jets and passengers looking for seats. Experienced Entrepreneur. And, if they want, they can book a fully private flight, which comes with a higher cost. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways.