sergey petrossov net worth

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. Now people from all walks of life have started evaluating his merits. Petrossov's family, however, profited handsomely. 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 In the beginning, JetSmarter bought seats on flights that were empty because they were being moved to another location for a flight originating elsewhere. 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. 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. In fact, they were even cheaper than flying first class on commercial airlines. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided. 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. As an entrepreneur, Petrossov focuses heavily on two things: maintaining his professional network and building a trustworthy, relatable brand and story. 2023 Forbes Media LLC. 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. 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. 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. He is seeking a refund and damages. He was also a board advisor to a private jet operator with the worlds largest on-demand Gulfstream charter fleet. Try This App", "Empty Leg Flights Make Private Jet Travel More Affordable", "JetSmarter brings app-based private charter service in Chicago", "These Two Aviation Companies Are Redefining Private Jet Travel", "EXCLUSIVE: JetSmarter's evolution is bringing branded airplanes, aircraft management, new single seat, empty leg and charter pricing, plus a new COO", "JetSmarter partners with GlobeAir enabling international expansion", "Charter a flight with the tap of an app", "Pernod Ricard and JetSmarter Announce One-Of-A-Kind Partnership", "Vertis Inks ME Partnership with JetSmarter", "SportStar Relocation Announces Partnership with JetSmarter", "The Fastest-Growing Private Jet Company In The World", "JetSmarter Tries to Extort Journalists for Positive Coverage", "This Startup Made Journalists Agree To Write Positive Reviews Or Pay Them $2,000", "Kim Kardashian and Petra Nemcova are part of a new $2 million lawsuit against JetSmarter", "UPDATED (Second Update): JetSmarter lawsuit referred to arbitration. He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California. We used this funding to expand our JetShuttle offerings and continue to expand globally. This tailored approach seems to be working. 1,302 likes. 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. [29], In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. With businesses like Uber becoming the norm, how do you see the private aviation industry changing in the near future? To join JetSmarter costs $15,000 a year to gain access, Petrossov said, and members then pay for the flights or other services. Like Uber, Lyft, and AirBnb, who don't own the cars or properties they peddle, JetSmarter does not own the planes. He filed a lawsuit against JetSmarter and its salesperson. 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. For him, it seems innate. People are becoming more and more interested in Sergey Petrossov because of how much money he makes. It's 30-year-old founder is scrambling to explain himself. While many 20-somethings stick it out paying their dues in corporate jobs, Petrossov has enthusiastically moved from one uncertain endeavor to another. 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 . Peoples lifestyles are continuously enhanced by technology, so Petrossov never stops thinking about how to make the most of all of the gadgets and devices that people have at their fingertips. 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. JetSmarters goal is also to utilize those passenger-free flight hours and fill them. The company has also been known to sue journalists for writing articles critical of the company if they do not take down the article. Its no longer about the brand, marketing and brand association. Learn more in our Cookie Policy. The flight eventually continued to New York. Thanks for reading! [1] The app connected users to available aircraft and routes in the United States, Europe and Middle East. JetSmarter told Galvez that if he bought it now, he could get three years for $97,500. With investors that include the Saudi royal family and Jay-Z , JetSmarter is valued at $1.5 billion. And down the road, we want to own premium business travel in the United States, he says. What began as an idea in 2012 has now become the worlds largest private aviation travel and lifestyle community. Founder @jetsmarter Acquired by @vistaglobalholding Building @flyxo @vistajet. JetSmarter aggregates prices and availability from hundreds of aviation companies and sells flights in a variety of ways. 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. 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. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. Its no longer about the brand, marketing and brand association. That means going after business-class and first-class travelers and trying to lure them to JetSmarter. What was your background prior to JetSmarter? Sergey Petrossov. He graduated in 2009. It's been a wild few months for Sergey Petrossov, the 28-year-old founder and CEO of JetSmarter, which hopes to be the Uber of private jet service and has gained high-profile investors like the. Empty-leg flight deals, or repositioning flights. His success has come from the rising of hard work. The company charters them or books space on them from other companies. [9], In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. Should the arrest of a former top executive on unrelated charges and the shifting of CFOs raise questions about the business? Kim Kardashian, Kanye West, and DJ Khaled are customers of JetSmarter. We have to boil that down to them.. (Photo by Gustavo Caballero/Getty Images for DuJour). By 2009, Sergey Petrov was the 51st richest businessman in Russia, according to Forbes magazine. All while avoiding the hassle and headache of airport security screenings. We think about three pillars: how you get there, who you meet and where you go. 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. The FBI is also investigating JetSmarter, specifically about the business and sources of cash, drug transportation, and the cash customers transported on JetSmarter flights. The cost was high., Private jets often sit around empty, further driving up prices. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes. 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. You can update your choices at any time in your settings. 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. 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). How To Remove Items From Your Credit Report, How To Boost Your Credit Card Approval Odds, Best Pet Insurance Companies of April 2023, Drivers May Soon Get More Money Back From Car Insurance Companies, Non-Fungible Frenzy: Why NFTs Are Suddenly Everywhere. The catch-22 was that the more members the company signed up, the faster they burned through their investment money. 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. The company is still not profitable but it isn't losing as much money on flights. Last year website The Verge wrote a long article detailing anonymous complaints the company faced after changing up the services it offered. The company had booths and VIP lounges at yacht shows, art fairs, and other places wealthy people gathered en masse. Contact me at ndahlbergbiz@gmail.com. We spend a lot of time asking members to spread the word. 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. 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. 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. Unique services offered by JetSmarter include the option of booking free seats on scheduled shuttle routes or creating shuttles between certain cities, free flights to new destinations daily from members favorite cities and real-time private jet booking with guaranteed availability in more than 170 countries. If you enjoy our content, support us by becoming a paid subscriber. JetSmarter, founded by CEO Sergey Petrossov, has reached a $1.5 billion valuation following that opposite path. I knew I wanted to go in technology, Petrossov says. Posts Videos Tagged. JetSmarter is not taking the criticism from customers and former employees lying down. I fly three or four times a month, usually three domestic flights and one international flight, said Petrossov. And let's not forget Billy McFarland and the Fyre Festival debacle. What are JetSmarters expansion plans for the future? What's next? After the Paola flight, the federal agency is looking into whether the startup is following rules governing commercial versus private aviation flights. this link is to an external site that may or may not meet accessibility guidelines. I agree to Money's Terms of Use and Privacy Notice and consent to the processing of my personal information. 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. He sees his app as not a premium product, but rather as providing value to consumers. Petrossov has not responded to my request for an interview. 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. Its like a country club that follows you around, Petrossov said. A few friends had introduced him to private jets, and he started asking questions, as he puts it, about how the heck this industry was run. His big idea was to apply the Uber model to private jets, which spent too much time grounded or flying empty. 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. I moved to South Florida when I was 11 or 12. JetSmarters goal is to make private jet travel accessible to the masses, and more than just the privileged .01 percent. In order for JetSmarter to keep flying, it had to keep recruiting active members. 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. JetSmarter put together an impressive investor presentation filled with the projection that revenue would grow from $124 million in 2016 to more than $2 billion in 2019. Our average user visits JetSmarter 12 times daily. In fact, it is making money on some flights. As a renowned principal, Sergey is always finding manners to innovate different industries. 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. Ultimately, JetSmarter allows those with a lower net worth the ability to book private flights. After Clearlake and Jeffries' investments, JetSmarter's salespeople were pushed harder to sign up new members and bring in cash. Galvez is no longer using his $97,500 JetSmarter membership. One of the benefits to travel by private jet is skipping the hassle of TSA. // ]]> JetSmarters own Safety Audit Committee analyzes the procedures of all primary operators in the JetSmarter program. 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. My membership meant nothing anymore. Work stopped on Bezos' megamansion as his net worth drops by $57B www.vistaglobal.com. What was your vision? CNBC spoke to Joann Bachewicz from Lansing, Illinois. Our partners can use the same app as our customers to manage their inventory in real-time from any mobile device, and fill their flights instantly. There are 4 professionals named "Sergey Petrossov", who use LinkedIn to exchange information, ideas, and opportunities. About a year ago, Leonardo Galvez received an offer from JetSmarter that was too good to pass up. 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. . If you have a real, deep drive, no matter how much youre knocked down, you can always get your head up, he says of his career. Education After graduating from high school, Petrossov studied finance at the University of Florida. JetSmarter is headquartered in Fort Lauderdale, Florida, and maintains offices in Zurich, Moscow, London, Riyadh, and Dubai. Where and how did you raise capital for the company? 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. EMEA +44 20 7330 7500. In high school, he attempted to start an import-export business for automobile tire rims. [CDATA[ Pretend youre 80 years old and looking back on your lifehow would you feel if you didnt try anything? And, if they want, they can book a fully private flight, which comes with a higher cost. Continue with Recommended Cookies, Your email address will not be published. Customers started accusing JetSmarter of bait and switch. How it all began for the 29-year-old JetSmarter founder, and his take on the future of private aviation. A membership model would give the company both regular revenue and enough customers to set it on the road to going public one day. "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? Dorado, PR 00646, Metro Office Park Basically, they are bullying anyone critical of the company. JetSmarter has essentially redefined the entire industry with one, clear mission: to reimagine aviation as it was meant to be. [28] Adding to its services, the company offered helicopter transfers in select cities. And so JetSmarter came to be, though not easily. Through the investments, the organization is worth $1.5 billion. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. [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. 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. 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. In terms of our marketing strategy, our business wouldnt exist without word-of-mouth. What are JetSmarters expansion plans for the future? This page was last edited on 13 April 2023, at 03:18. Yep, JetSmarter had changed its terms and conditions again. In the Forbes report, Vista Chairman Thomas Flohr described the deal as primarily an equity swap. He jumped at the chance to purchase the longer deal. Founder and CEO of JetSmarter What are the main differences between JetSmarter and its close competitors? It is this small switch in outlook that the customers needs are paramount, that can make a big difference. https://money.com/jetsmarter-uber-private-jets-ceo/. These days, JetSmarter no longer sells memberships. The Russian-born Florida resident aims to change the landscape of private aviation by making it more attainable and efficient than ever before. Its third round in 2016 raised $105 million and put the valuation of the startup at $1.5 billion. 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. How did the journey with JetSmarter begin? Also, today, in the tech age, luxury is transcending past brand to experience. Jul 10, . Petrossov says about 1,000 of its members representing the top 10% of its customers spend an average of $140,000 per year. Petrossov declined to say when JetSmarter would turn a profit. Even if that cost is divided by eight to 10 passengers, JetSmarter was losing money. Its not always about price, he said, noting that the company currently has 8,000 members and transports 20,000 people a month. The salespeople offered special deals, incentives, and other tactics in what can only be called a "money grab.". The hardest thing on the demand side, he says, is to change consumer behavior. Petrossov says the company has at times been misunderstood but hes worked hard to make its value clear. TAGS:AIRPLANEAVIATIONFLYFLYINGJETJET SMARTERLUXURYPRIVATE. Customers are calling the company a "high tech shell game" and an "unlawful bait and switch" and a "fraud," according to the lawsuits filed against the company. In September 2016, then-Florida Gov. [12][18][19], In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. 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. Also, the mass affluent are looking for experiences tailored to the lifestyle they want to live. JetSmarter was the first "flying unicorn," with a valuation of more than $1 billion.

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