Company:JetSmarter

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JetSmarter Inc.
TypePrivate
IndustryTransportation, aviation, technology
FoundedNovember 2012
FoundersSergey Petrossov
Headquarters
Fort Lauderdale, Florida
,
United States
Area served
Worldwide
Key people
  • Sergey Petrossov (CEO)
ServicesMobile application, flight sharing, aircraft for hire
Websitejetsmarter.com

JetSmarter was a corporation and mobile application for private jet users. The company was headquartered in Fort Lauderdale, Florida, United States.[1] The app connected users to available aircraft and routes in the United States, Europe and Middle East.[2][3][4] The company was purchased by Vista Global in 2019 and merged into a new brand, XOJET Aviation.

History

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.[7][8] In August 2012, the beta version was launched and tested among a closed group of private aviation users. After testing proved successful, Petrossov sought and received substantial venture funding to expand JetSmarter's scope.[9]

In June 2015, JetSmarter announced its new European headquarters in Zurich, Switzerland. In early 2016, it launched flights within Europe.[10][11] JetSmarter had offices in Zurich, London, Moscow, Dubai, Riyadh, and Fort Lauderdale.[12]

On February 16, 2017, the President of Jetsmarter, Gennady Barsky, resigned after he was arrested at the Broward Financial Center, site of the company's headquarters. He was charged with five counts of grand theft by embezzlement by authorities in Contra Costa, California.[13]

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. Vista said it would maintain JetSmarter's office in Ft. Lauderdale where its digital team was based.[14]

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.[15]

Funding

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,[16] and investment bank Goldman Sachs Capital Partners.[12][17][18]

In December 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion valuation. The company said this would fuel international expansion and add at least 80 more routes to its existing 50 routes.[19][20][21]

Services

JetSmarter flight services included a mix of shared and private flights:

  • Seats on existing jetpooling flights.[22]
  • On-demand shared flights. [citation needed]
  • On-demand private flights.
  • Helicopter transfers in select cities.
  • Empty-leg flight deals, or repositioning flights.[23]

JetSmarter claimed to offer 3,000 private jets and 2,000 free empty legs per month.[24] In January 2016, Chicago Tribune reported that JetSmarter had launched app-based private charter service in Chicago, using Midway International Airport as its access point.[25] Adding to its services, the company offered helicopter transfers in select cities.[26]

In May 2018, JetSmarter announced it would have a fleet of 20 JetSmarter branded aircraft by the end of the year. The aircraft would be managed and operated by JetEdge, a Part 135 operator. It also said it had eliminated free shuttles and for new members, it had eliminated free flights under three hours. The company also said it was providing integration via SAP Concur to attract more corporate travel business.[citation needed]

Partnership

JetSmarter partnered with various air carriers that span the range of the private charter industry.[27][28] Partnerships included Pernod Ricard,[29] Vertis Aviation,[30] and SportStar Relocation.[31] The company also partnered with Jet Edge and Air Hamburg to cater to its global community of private jet fliers.[32]

Corporate affairs

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.[33] According to the reporter if the story did not appear within that timeline, the reporter's credit card would be charged $2,000.[34]

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. He alleged misleading advertising on social media from Kim Kardashian and Petra Nemcova as well as deceptive sales tactics.[citation needed] In the same month, JetSmarter agreed to an undisclosed settlement after a New Jersey coupled filed a lawsuit alleging deceptive sales tactics. Their lawsuit included a text message from a JetSmarter sales representative promising free flights they allege were never provided.[citation needed]

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". The business news channel also published a letter from JetSmarter's general counsel attempting to quash its investigation. The report included a video of a JetSmarter flight that was diverted by a passenger making terroristic threats.[35]

References

  1. ↑ "Jetsmarter: The Uber of Air Travel". The Wall Street Journal. https://www.wsj.com/video/jetsmarter-the-uber-of-air-travel/9CAB6665-E81D-4D54-846D-4B3C9991E971.html. 
  2. ↑ "Steep Fees and First-Class Prices, but Private Jets Are Available to More". The New York Times. February 16, 2015. https://www.nytimes.com/2015/02/17/business/despite-steep-fees-and-first-class-prices-private-jets-are-available-to-more.html?_r=0. 
  3. ↑ Camila Souza. "JetSmarter Is Uber for Affordable Private Jets". Tech Cocktail. http://tech.co/jetsmarter-uber-affordable-private-jets-2014-08. 
  4. ↑ "South Florida's flourishing private jet market attracts new entrants". Sun Sentinel. August 25, 2017. http://www.sun-sentinel.com/business/fl-bz-sofla-private-jet-travel-market-20170825-story.html. 
  5. ↑ Thomas, Aby Sam (March 1, 2015). "Sergey Petrossov's Sky-High Ambitions". Entrepreneur. Entrepreneur Media, Inc. https://www.entrepreneur.com/article/243431. 
  6. ↑ Mikhail Starodubov. "Fancy a quick getaway? Just hail a private jet". News24. http://traveller24.news24.com/News/Fancy-a-quick-getaway-Just-hail-a-private-jet-20141213. 
  7. ↑ Bertoni, Steven (24 Jan 2016). "Forbes 30 under 30 2016". Forbes. https://www.forbes.com/sites/stevenbertoni/2016/01/04/30-under-30-consumer-tech-2016/#174e96ab182c. 
  8. ↑ Hussain, Jawad (9 Nov 2015). "Interview: How Sergey Petrossov revolutionized private jet business". Arabian Gazette. http://www.arabiangazette.com/interview-sergey-petrossov-revolutionized-private-jet-business/. 
  9. ↑ Rachel Hennessey (October 31, 2014). "The JetSmarter App Puts Air Travel at Your Fingertips". Forbes. https://www.forbes.com/sites/rachelhennessey/2014/10/31/jetsmarter-flight-private-jet-app-sergey-petrossov/. 
  10. ↑ Davidson, Lauren (22 Mar 2016). "'Uber for private jets' launches on-demand service between London and Europe". Daily Telegraph. Telegraph Media Group Limited. https://www.telegraph.co.uk/technology/2016/03/22/uber-launches-on-demand-private-jet-service/. 
  11. ↑ Jan Kamps, Haje (23 Mar 2016). "JetSmarter puts a jet in your pocket, and is happy to see you". Techcrunch. AOL Inc. https://techcrunch.com/2016/03/23/jetsmarter-expands-to-europe/. 
  12. ↑ 12.0 12.1 Kamps, Haje Jan (23 Mar 2016). "JetSmarter puts a jet in your pocket, and is happy to see you". TechCrunch. AOL. https://techcrunch.com/2016/03/23/jetsmarter-expands-to-europe/. 
  13. ↑ "Ex-JetSmarter president arrested". miamiherald.com. https://www.miamiherald.com/news/business/article134829629.html. 
  14. ↑ https://www.miamiherald.com/news/business/article229059544.html Miami Herald
  15. ↑ [1] June 27, 2019
  16. ↑ "Meet the private-jet startup backed by Jay Z and the Saudi royal family". Business Insider. http://www.businessinsider.com/jetsmarter-private-jet-startup-2016-8. 
  17. ↑ "An 'Uber for private jets' startup just raised $20 million from Jay Z and the Saudi Royal Family". Business Insider. http://www.businessinsider.com/private-travel-startup-jetsmarter-raised-20-million-from-jay-z-and-saudi-royal-family-2015-7. 
  18. ↑ "With $20M In The Bank, JetSmarter Is Building The Uber Of The Skies". TechCrunch. https://techcrunch.com/2015/07/23/with-20m-in-the-bank-jetsmarter-is-building-the-uber-of-the-skies/. 
  19. ↑ Bensinger, Greg (2016-12-12). "Private-Jet Booking App Lands $105 Million in Funding". Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/private-jet-booking-app-lands-105-million-in-funding-1481567687. 
  20. ↑ "JetSmarter Raises $105 Million for Uber-Like Services in the Sky". Bloomberg.com. 2016-12-12. https://www.bloomberg.com/news/articles/2016-12-12/jetsmarter-raises-105-million-for-uber-like-services-in-the-sky. 
  21. ↑ "Jay Z-backed private jet firm JetSmarter raises $105 million at $1.5 billion valuation". December 12, 2016. https://venturebeat.com/2016/12/12/private-jet-marketplace-jetsmarter-raises-105-million-at-1-5-billion-valuation-from-saudi-royal-family-and-jay-z/. 
  22. ↑ "JetShuttle of JetSmarter". JetSmarter. https://jetsmarter.com/jetshuttle/. 
  23. ↑ "Need a Private Jet in a Pinch? Try This App". Bloomberg. https://www.bloomberg.com/video/jetsmarter-aims-to-be-the-uber-of-private-planes-ceo-uC9P3nGGRiOu4UsVFfp7lg.html. 
  24. ↑ "Empty Leg Flights Make Private Jet Travel More Affordable". LuxuryEscapes.com. http://luxuryescapes.com/magazine/empty-leg-flights-make-private-jet-travel-affordable/. 
  25. ↑ "JetSmarter brings app-based private charter service in Chicago". Chicago Tribune. January 11, 2016. http://www.chicagotribune.com/bluesky/originals/ct-jetsmarter-private-jet-chicago-bsi-20160107-story.html. 
  26. ↑ "These Two Aviation Companies Are Redefining Private Jet Travel". Forbes. https://www.forbes.com/sites/douggollan/2017/01/14/these-two-airlines-are-redefining-private-jet-travel/#7b298771e615. 
  27. ↑ Vicky Karantzavelou. "JetSmarter partners with GlobeAir enabling international expansion". TravelDailyNews. http://www.traveldailynews.com/news/article/62752. 
  28. ↑ Marcia Heroux. "Charter a flight with the tap of an app". Sun-Sentinel. http://articles.sun-sentinel.com/2014-08-19/news/fl-uber-for-jets-20140819_1_mobile-app-private-jets-dayjet. 
  29. ↑ Ricard, Pernod. "Pernod Ricard and JetSmarter Announce One-Of-A-Kind Partnership". www.prnewswire.com (Press release). Retrieved 2018-06-11.
  30. ↑ "Vertis Inks ME Partnership with JetSmarter". https://www.ainonline.com/aviation-news/business-aviation/2016-12-07/vertis-inks-me-partnership-jetsmarter. 
  31. ↑ "SportStar Relocation Announces Partnership with JetSmarter". April 27, 2017. http://robbreport.com/partners/sportstar-relocation-announces-partnership-jetsmarter-271032/. 
  32. ↑ "The Fastest-Growing Private Jet Company In The World". https://www.ainonline.com/aviation-news/business-aviation/2016-12-07/vertis-inks-me-partnership-jetsmarter. 
  33. ↑ Sottek, T.C. (March 3, 2017). "JetSmarter Tries to Extort Journalists for Positive Coverage". The Verge. https://www.theverge.com/2017/3/3/14807340/jetsmarter-private-jet-startup-journalist-extortion-sponsored-articles. 
  34. ↑ "This Startup Made Journalists Agree To Write Positive Reviews Or Pay Them $2,000". Jalopnik. March 5, 2017. http://jalopnik.com/this-startup-made-journalists-agree-to-write-positive-r-1792970182. 
  35. ↑ Wu, Robert Frank, Scott Zamost, Hannah Kliot, Jasmine (January 10, 2019). "JetSmarter faces lawsuits, losses and security questions". https://www.cnbc.com/2019/01/08/jetsmarter-faces-lawsuits-losses-and-security-questions.html. 

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