JetSmarter

Last updated

JetSmarter Inc.
Type Private
IndustryTransportation, aviation, technology
FoundedNovember 2012
FoundersSergey Petrossov
Headquarters
Fort Lauderdale, Florida
,
United States
Area served
Worldwide
Key people
  • Sergey Petrossov (CEO)
Services Mobile application, flight sharing, aircraft for hire
Website jetsmarter.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.

Contents

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:

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]

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References

  1. ↑ "Jetsmarter: The Uber of Air Travel". The Wall Street Journal . Retrieved January 26, 2016.
  2. ↑ "Steep Fees and First-Class Prices, but Private Jets Are Available to More". The New York Times . February 16, 2015. Retrieved January 26, 2016.
  3. ↑ Camila Souza. "JetSmarter Is Uber for Affordable Private Jets". Tech Cocktail. Retrieved January 20, 2015.
  4. ↑ "South Florida's flourishing private jet market attracts new entrants". Sun Sentinel. August 25, 2017. Retrieved August 25, 2017.
  5. ↑ Thomas, Aby Sam (March 1, 2015). "Sergey Petrossov's Sky-High Ambitions". Entrepreneur Media, Inc. Entrepreneur.
  6. ↑ Mikhail Starodubov. "Fancy a quick getaway? Just hail a private jet". News24. Archived from the original on March 4, 2016. Retrieved January 20, 2015.
  7. ↑ Bertoni, Steven (January 24, 2016). "Forbes 30 under 30 2016". Forbes.
  8. ↑ Hussain, Jawad (November 9, 2015). "Interview: How Sergey Petrossov revolutionized private jet business". Arabian Gazette. Archived from the original on May 2, 2016. Retrieved April 8, 2016.
  9. ↑ Rachel Hennessey (October 31, 2014). "The JetSmarter App Puts Air Travel at Your Fingertips". Forbes. Retrieved January 20, 2015.
  10. ↑ Davidson, Lauren (March 22, 2016). "'Uber for private jets' launches on-demand service between London and Europe". Telegraph Media Group Limited. Daily Telegraph.
  11. ↑ Jan Kamps, Haje (March 23, 2016). "JetSmarter puts a jet in your pocket, and is happy to see you". AOL Inc. Techcrunch.
  12. 1 2 Kamps, Haje Jan (March 23, 2016). "JetSmarter puts a jet in your pocket, and is happy to see you". AOL. TechCrunch.
  13. ↑ "Ex-JetSmarter president arrested". miamiherald.com.
  14. ↑ https://www.miamiherald.com/news/business/article229059544.html Miami Herald
  15. ↑ June 27, 2019
  16. ↑ "Meet the private-jet startup backed by Jay Z and the Saudi royal family". Business Insider . Retrieved August 26, 2016.
  17. ↑ "An 'Uber for private jets' startup just raised $20 million from Jay Z and the Saudi Royal Family". Business Insider . Retrieved January 26, 2016.
  18. ↑ "With $20M In The Bank, JetSmarter Is Building The Uber Of The Skies". TechCrunch . Retrieved January 26, 2016.
  19. ↑ Bensinger, Greg (December 12, 2016). "Private-Jet Booking App Lands $105 Million in Funding". Wall Street Journal. ISSN   0099-9660 . Retrieved December 18, 2016.
  20. ↑ "JetSmarter Raises $105 Million for Uber-Like Services in the Sky". Bloomberg.com. December 12, 2016. Retrieved December 18, 2016.
  21. ↑ "Jay Z-backed private jet firm JetSmarter raises $105 million at $1.5 billion valuation". VentureBeat. December 12, 2016. Retrieved December 18, 2016.
  22. ↑ "JetShuttle of JetSmarter". JetSmarter. Archived from the original on February 3, 2016. Retrieved January 26, 2016.
  23. ↑ "Need a Private Jet in a Pinch? Try This App". Bloomberg. Retrieved January 20, 2015.
  24. ↑ "Empty Leg Flights Make Private Jet Travel More Affordable". LuxuryEscapes.com. Retrieved January 26, 2015.
  25. ↑ "JetSmarter brings app-based private charter service in Chicago". Chicago Tribune. January 11, 2016. Retrieved January 26, 2016.
  26. ↑ "These Two Aviation Companies Are Redefining Private Jet Travel". Forbes. Retrieved January 14, 2017.
  27. ↑ Vicky Karantzavelou. "JetSmarter partners with GlobeAir enabling international expansion". TravelDailyNews. Archived from the original on October 18, 2014. Retrieved January 20, 2015.
  28. ↑ Marcia Heroux. "Charter a flight with the tap of an app". Sun-Sentinel. Retrieved January 20, 2015.
  29. ↑ Ricard, Pernod. "Pernod Ricard and JetSmarter Announce One-Of-A-Kind Partnership". www.prnewswire.com (Press release). Retrieved June 11, 2018.
  30. ↑ "Vertis Inks ME Partnership with JetSmarter" . Retrieved December 7, 2016.
  31. ↑ "SportStar Relocation Announces Partnership with JetSmarter". April 27, 2017. Retrieved April 27, 2017.
  32. ↑ "The Fastest-Growing Private Jet Company In The World" . Retrieved March 2, 2016.
  33. ↑ Sottek, T.C. (March 3, 2017). "JetSmarter Tries to Extort Journalists for Positive Coverage". The Verge. Retrieved March 20, 2017.
  34. ↑ "This Startup Made Journalists Agree To Write Positive Reviews Or Pay Them $2,000". Jalopnik. March 5, 2017. Retrieved March 5, 2017.
  35. ↑ Wu, Robert Frank, Scott Zamost, Hannah Kliot, Jasmine (January 10, 2019). "JetSmarter faces lawsuits, losses and security questions". www.cnbc.com. Retrieved April 14, 2019.{{cite web}}: CS1 maint: multiple names: authors list (link)
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