How app dubbed 'Uber of air travel' took dark turn into $3,000,000 lawsuit
Some apps are so brilliant, we wonder how we ever lived without them. While there have been plenty of rivals and imitations since their inception, the likes of Uber and Airbnb reign supreme in their various fields. One app even tried to take on Uber in the field of flight, hoping to become the 'Uber of air travel' but sadly tailspinning into a $3 million lawsuit from one of its customers.
Whereas we once had to physically phone a taxi company to order a ride, Uber took the hassle out of it by letting you order a car directly to your door. Better yet, you don't have to mess around with loose change, as you can also conveniently pay through the app.
There is a version of 'Uber for private jets', and in major cities like New York and London, it's easier than you'd think to get a helicopter from actual Uber. More and more companies are trying to get in on the flying taxi bandwagon, but as the story of JetSmarter proves, getting the idea of private plane hire off the ground can sometimes be hit by turbulence.
Founded by entrepreneur Sergey Petrossov in 2012, the idea of JetSmarter landed him on Forbes' "30 Under 30" business leaders of 2016 list, although his fame was soon remembered for a different reason.
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With customers paying between $5,000 and $15,000 a year, they were promised 'unlimited free flights' on certain routes for members. In general, you could book seats on shared or private jets, as well as being able to charter entire jets.
Reminding us of the American Airlines passenger who had his 'unlimited' first class ticket revoked, JetSmarter soon found itself in a legal pickle. Despite backing from the likes of Jay-Z and the Saudi Royal Family, JetSmarter was accused of having a bait-and-switch business model.
In 2018, a former member filed a lawsuit seeking at least $2 million in damages when JetSmarter declined to renew his membership. The plaintiff maintained that misleading advertising endorsed by Kim Kardashian was coupled with 'deceptive sales tactics'.
The same month, a second case was settled for an undisclosed sum when a couple filed another lawsuit alleging 'deceptive sales tactics'. That particular case included a text from a JetSmarter sales representative that promised free flights they claim they were never provided.
One disappointed user maintained: “They lock you into a multi-year contract, then change the terms after you join."
Things culminated in a 2019 investigative report from CNBC that was titled "Tailspin: JetSmarter tried to be the Uber of private jets, now it faces lawsuits, losses and security questions."
As well as including a video of a JetSmarter flight being diverted when a passenger made threats of terrorism, the outlet also shared a letter where JetSmarter's general counsel appeared to tell it to stop the investigation.
If that wasn't enough, JetSmarter was accused of failing to do background checks, allowing sensitive data to be leaked during breaches, and frequent last-minute cancellations.
A $3 million settlement fund was approved in April 2019, although a follow-up from CNBC suggests that the final amount could be closer to $6 million due to another $3 million in legal fees.
In the end, JetSmarter was sold to private aviation group Vista Global in 2019. The app was rebranded as XO, which still exists in 2025.