- General
- April 10, 2019
- 4 minutes read
VistaJet Acquires JetSmarter
A JetSmarter branded plane image: JetSmarter Business aviation company VistaJet has reached a deal to acquire JetSmarter, an Uber-like service for private…
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| A JetSmarter branded plane
image: JetSmarter
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Business aviation company VistaJet has reached a deal to acquire JetSmarter, an Uber-like service for private planes that’s backed by some $130 million in funding according to Crunchbase data. Investors in the company include rapper Jay-Z, Crashlytics founder Wayne Chang, KZ Capital, and members of The Saudi Royal Family.
Once valued as high as $1.5 billion, JetSmarter has faced a combination of lawsuits, losses, and security questions leading to hiccups and a reported valuation ($250 million) worth less than one-fifth of that amount based on its latest investment. The company’s annual subscription — for as little as $7,000 to $9,000 per year- – based revenue model is said to have led to losses for the company, as airplane trips cost much to manage, although JetSmarter doesn’t actually own the planes its customers ride on.
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| JetSmarter Chief Revenue Officer Mikhail Gaushkin
image: JetSmarter
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According to CNBC, JetSmarter’s losses ran up to $5 million per month coupled with heavy marketing spend. VistaJet didn’t disclose a purchase price for the company.
