JetSmarter Raises $105 Million for Uber-Like Services in the Sky

JetSmarter, which operates an Uber-like network that connects travelers to empty seats on chartered planes, raised $105 million in its latest funding round, indicating that the startup has managed to make the concept work where others have failed, according to Bloomberg.

The company, which currently offers about 50 routes between more than 30 cities around the world, plans to use the cash injection to expand into Asia, South America and Africa, said founder and Chief Executive Officer Sergey Petrossov. His goal is to add another 80 routes within the next year.

JetSmarter’s ride-sharing model offers empty seats on privately chartered planes to other passengers, helping lower costs and in theory attract more customers. Traditionally, 35 percent of private jets fly empty, according to Petrossov, which made the system highly inefficient and expensive.

Other startups with similar models have shut down, with some blaming high costs and onerous regulations. BlackJet, originally backed by Uber co-founder Garrett Camp, closed its doors earlier this year after running short on cash and failing to win enough users. Beacon and Airpooler also ended operations and Flytenow was shut down by the Federal Aviation Administration late in 2015.

JetSmarter has managed costs by changing seat prices based on predictions of how popular the routes and flight times are and by increasing the number of available flights according to demand. Of course, raising a ton of cash at a rapid clip doesn’t hurt either; prior to the most recent financing, JetSmarter raised about $45 million in two rounds in less than a year. Florida-based company said the new capital gives it a valuation of $1.6 billion.