luckie
07-21-2006, 11:59 AM
Segways motoring uphill in Colorado
2-wheel transporters slowed by failure at Capitol, dealer woes
By James Paton, Rocky Mountain News
July 20, 2006
http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4856492,00.html
The maker of the scooterlike Segway is gaining momentum, racking up sales growth of more than 50 percent a year, seeing strong demand in Europe and looking forward to an initial public offering. The company also is quick to note that 42 states plus Washington, D.C., have passed Segway-friendly laws, a key to gaining wider acceptance. But Segway Inc.'s ride in Colorado has been anything but smooth.
Legislation that would have given Segways the green light to roll along Colorado's sidewalks, bike paths and certain roads failed twice, a couple of dealers have dropped out of the market, and a Boulder group has emerged as one of the fiercest critics of the human transporters. "Cities like Atlanta and Washington actually promote Segways," said James Norrod, the company's chief executive. "And then you have cities like Boulder that just want to fight it. Boulder ought to be worried about global warming and all the pollution we're putting in the air, not a person on a Segway."
Norrod knows the state well. He lived in Boulder roughly 15 years ago and more recently owned a home in Louisville. And he said he is baffled as to why the city and state haven't warmed to the product. "It's an enigma to me," said Norrod, who was asked by Segway's main investors - Credit Suisse Group and Kleiner Perkins Caufield & Byers - to lead the company.
Sanford Greenberg, who sells Segways at First Class Imports in Boulder, said the city is "backward" when it comes to the two-wheeled, battery-powered devices. Boulder's "environmentally friendly, sophisticated, affluent" residents, he said, should like the products. "Boulder is supposed to be a progressive town, but I think it's behind in an area where I'd think they would be up front," said Greenberg, a 30-year resident. However, a Boulder ordinance prohibits "motorized toy vehicles" on public streets, paths and sidewalks and puts Segways in that category, said Carl Castillo, the city's policy adviser. The city will enforce it, too. Greenberg says he once was given a citation by a Boulder police officer for standing on a Segway on a sidewalk.
Charlotte Sorenson, who heads a group called Walk Boulder and refers to herself as a "pedestrian advocate," is among those stubbornly opposed to Segways. She said the company has won the support of state governments with its "shrewd marketing blitz" but argues that the gizmos belong on streets designed for motorized traffic, not on footpaths. "Sidewalks are meant for walking," she said. "Not an onslaught of motorized toys that would jeopardize the safety of countless people who use them for health and recreation and community enjoyment."
The majority of states with Segway laws defer to local governments to regulate the devices further, Norrod said. So if Colorado passed a law, joining most of the country, Boulder still could crack down. San Francisco, for instance, prohibits them on sidewalks. And in the absence of a state law, Segways can still roam in Colorado. Cities and counties across the state can regulate Segways, and some permit the products.
The mayor of Windsor, Ed Starck, likes them. His wife bought him one for their wedding anniversary last year, and he later acquired one for her so they could ride together. Windsor has an ordinance allowing them everywhere but the highways that pass through town. Estes Park police use them, and security guards at the Belmar shopping district in Lakewood ride on them. And while there is no Segway-specific language on the books in Denver, they are thrown in the same category as skateboards and allowed on sidewalks, with the exception of the 16th Street Mall.
Still, statewide legislation is important in giving Segways legitimacy and creates standards that serve as a guide, the company said. It also could clear up confusion about where they are allowed. "Colorado obviously is a state we're seeking, and we think it's a huge potential market for us," said Matt Dailida, Segway's director of regulatory and government affairs.
Segways have been slow to catch on and have failed to live up to the hype seen in their early days of 2001 and 2002, but the company has made progress lately, finding that police departments represent the biggest growth opportunity. Getting state support in Colorado would help Segway advance further down the road. So far, however, the state has proved to be a challenge.
Sen. Deanna Hanna, D-Lakewood, had backed legislation calling for a uniform state law to regulate Segways. But the Colorado Senate killed the bill earlier this year. Hanna resigned in March amid an ethics controversy surrounding her demands for "reparations" from a group that endorsed her opponent. "I think we would have made it," Dailida said, "except our sponsor ran into a little ethical issue and had to resign. It made it impossible for the Senate to really reward her with passing the legislation."
Segway also has lost a couple of dealers in the state. Wayne Runge stopped selling Segways at the end of 2005. His store, Cool Toys Marine in Littleton, had unloaded 16, but the company wanted him to take another shipment of 25 Segways, and he didn't think there was enough demand to justify his cost. So he declined, and Segway, he said, cut him off as a dealer. "To say Segway and profit in the same sentence is very hard to do," Runge said. The electric Segways should appeal to those concerned about high gas prices. But Runge said he believes the issue has not been enough to motivate consumers to pay about $5,000 to buy one. "I don't buy it," he said. And Len Osmond shuttered his Segway shop in LoDo in October. The businessman, who poured a lot of money into promoting the Segway and never got it back, blames the demise of the state law. Consumers, he said, were worried about the possible restrictions, and Osmond couldn't give them a firm answer. "I'm heartbroken, not to mention broke," he said. Osmond is still renting them out to corporations, foundations and individuals, including those who have trouble walking, to try to offset part of the loss. Still, Segway dealer Dave Floyd, of Estes Park, is "staying alive" and confident about his prospects, he said. He leads people on Segway tours and said he has sold about 140 units since opening about a year ago. "I can smell success coming at me," he said.
Rep. Ray Rose, R-Montrose, pushed for the law and said he is "disappointed that the state of Colorado would ignore such an economical and environmentally friendly piece of transportation." The effort isn't dead. Rose said he expects the debate among Colorado's lawmakers to resurface. Will Sorenson, the Boulder detractor, fight it equally hard next time? "Totally," she said. "Why not? This is truly something I believe in."
2-wheel transporters slowed by failure at Capitol, dealer woes
By James Paton, Rocky Mountain News
July 20, 2006
http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4856492,00.html
The maker of the scooterlike Segway is gaining momentum, racking up sales growth of more than 50 percent a year, seeing strong demand in Europe and looking forward to an initial public offering. The company also is quick to note that 42 states plus Washington, D.C., have passed Segway-friendly laws, a key to gaining wider acceptance. But Segway Inc.'s ride in Colorado has been anything but smooth.
Legislation that would have given Segways the green light to roll along Colorado's sidewalks, bike paths and certain roads failed twice, a couple of dealers have dropped out of the market, and a Boulder group has emerged as one of the fiercest critics of the human transporters. "Cities like Atlanta and Washington actually promote Segways," said James Norrod, the company's chief executive. "And then you have cities like Boulder that just want to fight it. Boulder ought to be worried about global warming and all the pollution we're putting in the air, not a person on a Segway."
Norrod knows the state well. He lived in Boulder roughly 15 years ago and more recently owned a home in Louisville. And he said he is baffled as to why the city and state haven't warmed to the product. "It's an enigma to me," said Norrod, who was asked by Segway's main investors - Credit Suisse Group and Kleiner Perkins Caufield & Byers - to lead the company.
Sanford Greenberg, who sells Segways at First Class Imports in Boulder, said the city is "backward" when it comes to the two-wheeled, battery-powered devices. Boulder's "environmentally friendly, sophisticated, affluent" residents, he said, should like the products. "Boulder is supposed to be a progressive town, but I think it's behind in an area where I'd think they would be up front," said Greenberg, a 30-year resident. However, a Boulder ordinance prohibits "motorized toy vehicles" on public streets, paths and sidewalks and puts Segways in that category, said Carl Castillo, the city's policy adviser. The city will enforce it, too. Greenberg says he once was given a citation by a Boulder police officer for standing on a Segway on a sidewalk.
Charlotte Sorenson, who heads a group called Walk Boulder and refers to herself as a "pedestrian advocate," is among those stubbornly opposed to Segways. She said the company has won the support of state governments with its "shrewd marketing blitz" but argues that the gizmos belong on streets designed for motorized traffic, not on footpaths. "Sidewalks are meant for walking," she said. "Not an onslaught of motorized toys that would jeopardize the safety of countless people who use them for health and recreation and community enjoyment."
The majority of states with Segway laws defer to local governments to regulate the devices further, Norrod said. So if Colorado passed a law, joining most of the country, Boulder still could crack down. San Francisco, for instance, prohibits them on sidewalks. And in the absence of a state law, Segways can still roam in Colorado. Cities and counties across the state can regulate Segways, and some permit the products.
The mayor of Windsor, Ed Starck, likes them. His wife bought him one for their wedding anniversary last year, and he later acquired one for her so they could ride together. Windsor has an ordinance allowing them everywhere but the highways that pass through town. Estes Park police use them, and security guards at the Belmar shopping district in Lakewood ride on them. And while there is no Segway-specific language on the books in Denver, they are thrown in the same category as skateboards and allowed on sidewalks, with the exception of the 16th Street Mall.
Still, statewide legislation is important in giving Segways legitimacy and creates standards that serve as a guide, the company said. It also could clear up confusion about where they are allowed. "Colorado obviously is a state we're seeking, and we think it's a huge potential market for us," said Matt Dailida, Segway's director of regulatory and government affairs.
Segways have been slow to catch on and have failed to live up to the hype seen in their early days of 2001 and 2002, but the company has made progress lately, finding that police departments represent the biggest growth opportunity. Getting state support in Colorado would help Segway advance further down the road. So far, however, the state has proved to be a challenge.
Sen. Deanna Hanna, D-Lakewood, had backed legislation calling for a uniform state law to regulate Segways. But the Colorado Senate killed the bill earlier this year. Hanna resigned in March amid an ethics controversy surrounding her demands for "reparations" from a group that endorsed her opponent. "I think we would have made it," Dailida said, "except our sponsor ran into a little ethical issue and had to resign. It made it impossible for the Senate to really reward her with passing the legislation."
Segway also has lost a couple of dealers in the state. Wayne Runge stopped selling Segways at the end of 2005. His store, Cool Toys Marine in Littleton, had unloaded 16, but the company wanted him to take another shipment of 25 Segways, and he didn't think there was enough demand to justify his cost. So he declined, and Segway, he said, cut him off as a dealer. "To say Segway and profit in the same sentence is very hard to do," Runge said. The electric Segways should appeal to those concerned about high gas prices. But Runge said he believes the issue has not been enough to motivate consumers to pay about $5,000 to buy one. "I don't buy it," he said. And Len Osmond shuttered his Segway shop in LoDo in October. The businessman, who poured a lot of money into promoting the Segway and never got it back, blames the demise of the state law. Consumers, he said, were worried about the possible restrictions, and Osmond couldn't give them a firm answer. "I'm heartbroken, not to mention broke," he said. Osmond is still renting them out to corporations, foundations and individuals, including those who have trouble walking, to try to offset part of the loss. Still, Segway dealer Dave Floyd, of Estes Park, is "staying alive" and confident about his prospects, he said. He leads people on Segway tours and said he has sold about 140 units since opening about a year ago. "I can smell success coming at me," he said.
Rep. Ray Rose, R-Montrose, pushed for the law and said he is "disappointed that the state of Colorado would ignore such an economical and environmentally friendly piece of transportation." The effort isn't dead. Rose said he expects the debate among Colorado's lawmakers to resurface. Will Sorenson, the Boulder detractor, fight it equally hard next time? "Totally," she said. "Why not? This is truly something I believe in."