The most unusual, cutting-edge transportation device available, the Segway Human Transporter, is at last being sold in Alberta stores. But whether our province will be a satisfactory market for the people peddling this personal electronic transporter (PET) is uncertain.
Alberta's first Segway-only store is set to launch next month in Calgary. Last fall, two retail outlets, one a hobby shop in Edmonton specializing in high-end remote-control toys and the other a motor-sports dealer in Calgary, were the first to make these PETs available to the public for test rides and purchase.
Jim Ewing, an entrepreneur from Prince Edward Island who owns Great Hobbies Inc., is the only person to date to have secured the right to sell Segways in Alberta under an "authorized dealer" shingle. Blackfoot Motosports was considering that option, and if you call the shop, there is a salesman promoting Segways. But for now, Blackfoot is more of an informal reseller.
Ewing landed the official rights to northern Alberta last August, when he started selling the PETs through Great Hobbies on 75th Street (Edmonton). His newest store, Segway of Alberta - Calgary, is set to open in March at 1249 38th Ave. N.E.
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| Dave Olecko, Business Edge |
| Calgary Segway owner Peter Merchant takes his personal electronic transporter for a spin. |
With worldwide sales of Segways lagging far behind Segway LLC's original projections, people who doubt whether Ewing can make money have history to go by.
The first measurable sign of how badly Segway was faring came in September 2003, when the company recalled its machines to do a minor software upgrade. Documents released at the time showed that after a year-and-a-half of production, 6,000 units had been sold.
(Probably only about 15 Albertans currently own a Segway.)
Last August, Axicon Technologies of Pittsburgh, a one-time manufacturer of transmissions for Segway, went bankrupt, contending that Segway's orders had fallen far short of the one million units Axicon had counted on. (Segway won't release numbers.)
So it's almost certain that sales have been lacklustre.
But there are also some good reasons to think that's about to change.
For one, the machines are gradually shedding the new and untested label. Most American states have written laws allowing them on sidewalks, and they have a solid track record of safety and reliability, helping to justify the roughly $6,000 pricetag for a mid-range model.
More importantly, though, consumers can now finally buy them in stores. Formerly, Amazon was the only retailer available to most people, and few of us are comfortable purchasing an expensive vehicle online without test rides or service shops to support the sale.
In 2004 Segway recognized this and changed tack, allowing brick-and-mortar stores to be set up in each major market. Chicago, for example, got its first Segway retail outlet only last summer.
So it's no wonder Segways aren't seen on the street much yet. But will they sell?
To get a true sense of what the market might do, I went to the guy who probably knows more than anyone else about owning one of these PETs in our province.
Peter Merchant, a partner and broker with Avison Young Commercial Real Estate (Alberta), has been riding his Segway in Calgary for business and pleasure for well over a year now (without a single mechanical problem, incidentally).
He estimates he rides his Segway to work in winter and summer about a third of the time. Snow, ice, extreme cold and loose gravel are factors that keep his Segway at home some days, or when he needs his car to travel outside the downtown core.
Merchant did not purchase his PET; he won it in a raffle at a conference in Atlanta in October 2003, which means he doesn't have to prove to himself or anyone else that his investment was worth it. He told me that he rides his Segway because it's a fun tool that assists him to efficiently conduct his business.
"I could take the Plus-15 and get to the destination in about 10-15 minutes, or I could hop on the Segway and be there in three," he said. "For me, time is money, and being able to accomplish more in a day is important."
Merchant frankly acknowledges Segway's weaknesses: The price is steep and it's awkward to haul up stairs.There's also a legal grey area in Alberta, as PETs are currently unregulated. A few months ago, a police officer stopped Merchant in front of Bow Valley Square in Calgary and told him to stay off the sidewalk. He therefore sticks mostly to roads, buildings and bike paths.
Would this officer have interpreted the rules similarly had Merchant been an infirm 80-year-old, instead of the tall, lithe, middle-aged guy he is? I doubt it.
Two different salespeople I spoke with tell me there is enormous interest among the "RV set," many of them retired people who want to use Segways to cruise around gigantic recreational parks.
Merchant says that he's never had an accident with a pedestrian, vehicle or bicycle. He rides safely in office buildings that allow it - most do - and his worst accidents have been minor bumps with inanimate objects in the early days of using the machine.
Gaining weight has not been an issue for him either, because he often uses his Segway in situations in which he would have driven his car. And it buys time, he says, for "more yoga and pilates."
But probably the biggest concern of Segway users, including Merchant, is the too-low battery capacity. But that looks like it's about to change, too.
Doug Field, chief technology officer for Segway, said a year ago that this issue is his team's top priority. And a source close to Segway tells me that a new model with longer battery life is coming very soon.
If that's true, the calculations will start to get easier for the big clients such as municipalities, which can really encourage use of this technology by giving it to bylaw officers and others.
I'd say Ewing and Co. may be getting into the game at the right time.
His goals are modest: He told me in a phone interview that he wants to move about 10 units per month, for starters.
Nevertheless, it could still be a slog.
"The reason it has been difficult for our community to understand what to do with it is simply because they have never tried it, they have never used it before," said Merchant. "And anytime you're exposed to something new, the natural reaction is to say 'no.' "
(Ian van de Burgt can be reached at ian@businessedge.ca)







