Business Cold Case Files: Segway – The Right Idea, the Wrong Time?

Could today's tech and market trends breathe new life into a once-hyped mobility flop?

When the Segway was unveiled in 2001, it was supposed to change everything. Steve Jobs reportedly said it would be “as big a deal as the PC.” Jeff Bezos imagined it reshaping cities. But instead of revolutionising transport, the Segway became a punchline—a bulky curiosity mostly confined to mall cops and tourist tours.

But was it truly a bad idea—or just launched at the wrong time?

The Original Pitch

The Segway PT (Personal Transporter) was designed as a two-wheeled, self-balancing electric vehicle for short-distance travel. It was eco-friendly, quiet, and futuristic—pitched as a solution to urban congestion and pollution.

At its core, Segway was trying to solve real problems. So what went wrong?

Why It Failed

1. Price Point: At around $5,000, it was out of reach for most consumers, especially for a product that didn’t replace a car or offer much more than walking.

2. Form Factor: It was bulky, hard to store, and looked… odd. There was no easy way to carry it into a lift or on public transport.

3. Infrastructure Misfit: Cities weren’t ready. Was it a pedestrian device? A vehicle? No one really knew, and regulation lagged.

4. Cultural Readiness: In 2001, “micro-mobility” wasn’t a term. Urban cycling was still a fringe activity, and people weren’t yet accustomed to seeing individual electric transport as normal.

The Segway wasn’t bad tech—it was a premature product in a world that hadn’t caught up.

What’s Changed

Fast forward to today, and the landscape is transformed:

• Battery tech has improved dramatically, bringing costs and weight down.

• E-scooters and e-bikes are mainstream, thanks to companies like Lime, Bird, and Xiaomi.

• Consumers are used to micro-mobility, especially in urban environments.

• Cities are rethinking infrastructure for short-distance personal transport.

• Design language has evolved. Sleek, minimal hardware is in—clunky machines are out.

Segway’s DNA lives on, ironically, in the modern e-scooter boom, it didn’t survive to lead.

Could It Work Today?

Possibly, but not in its original form. The idea of a high-tech short-distance transporter is viable (as Lime, Ninebot, and others have shown). But Segway needed:

• A lower price,

• A slimmer, less “mall cop” aesthetic,

• Clearer regulatory fit,

• And better timing.

In fact, Segway’s own successor company (Ninebot, now Chinese-owned) is a major player in the current scooter market.

Entrepreneur Takeaways

1. Being early is the same as being wrong—until the market catches up.

2. Innovation needs infrastructure. Without the ecosystem, even good ideas die.

3. Design matters. Form factor can make or break product adoption.

4. Don't just solve a problem—match your solution to the moment.

The next Cold Case File will be available on 18 August. Webvan – The grocery delivery company that flamed out in 2001. Could it have succeeded in today’s on-demand, app-based world?

As I firmly believe in learning from the mistakes of others, I will investigate cold case files of businesses that failed to determine the causes of the product's demise and what might be done differently today. These cases will be published in this newsletter on the first and third Monday of each month. They will also be available on my website: https://why-start-ups-fail.com/. (Note this website is in beta, but it will function properly if you care to take a look. There is a lot of material available.)

And I am always delighted to hear from my readers. To book a 30-minute call with me to chat about any business-related topic that interests you, please use this link: https://calendly.com/3-continents-consulting/open-discussion-how-can-i-help-you