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The two-wheeled personal transporter, which the company boldly claimed would revolutionise the way people got around, will be retired on July 15.
While used by tourists and some police forces, the vehicle also became known for high-profile crashes.
It even resulted in the death of a former Segway company president, who drove one off a cliff in 2009.
"Within its first decade, the Segway PT became a staple in security and law enforcement, viewed as an effective and efficient personal vehicle," said Segway president Judy Cai.
She noted it gained popularity with tourists in major cities around the world in the past decade.
But the Segway, which carries a standing passenger on a wide platform, accounted for less than 1.5 per cent of the company's revenue last year.
Former US president George Bush escaped injury after falling from a Segway in 2003.(Reuters)The company said 21 employees would be laid off, another 12 employees would stay on for two months to a year, and five would remain at the Bedford, New Hampshire facility.
"This decision was not made lightly, and while the current global pandemic did impact sales and production, it was not a deciding factor in our decision," Ms Cai said.
The transportation revolution that inventor Dean Kamen envisioned when he founded the company in 1999 never took off.
The Segway's original price tag of around $US5,000 was a hurdle for many customers.
It was also challenging to ride, because the rider had to be balanced at a specific angle for the vehicle to move forward. If the rider's weight shifted too much in any direction, it could easily spin out of control and throw the rider off.
Segways have been used by Indian police to patrol during the coronavirus outbreak.(Reuters: Hemanshi Kamani)They were banned in some cities because users could easily lose control if they were not balanced properly.
"What did they think the market was when they built this, when they designed it?" said automotive industry analyst Maryann Keller.
"My impression was they were talking about this as personal mobility. How could you think that something this large and expensive would be personal mobility?"
End of production latest in a series of unfortunate eventsIn 2017, Segway got into the scooter business, just as the light, inexpensive and easy-to-ride two-wheelers took over urban streets.
US Riders took 38.5 million trips on shared electric scooters in 2018, according to the National Association of City Transportation Officials.
Segway's foray into lightweight scooters may have been a sign that the original PT's days were numbered.
"It was probably over-hyped before it was launched, and when it was launched, it was like, 'This is not going to work on city sidewalks,'" Ms Keller said.
It comes after decades of high-profile falls, viral videos and even the death of a former company owner.
While used by tourists, Segways have been known for high-profile crashes.(ABC News: Rhiannon Shine)Ten months after buying the company in 2009, British businessman Jim Heselden died after the Segway he was riding careened off a 30-foot (9-metre) cliff not far from his country estate in northern England. He was 62 years old.
In 2003, US President George W Bush avoided injury after tumbling off a Segway at his parents' summer home in Kennebunkport, Maine.
Former cricketer and commentator Ian Healy appeared to ride one with ease, but fell while trying to get off a cameraman's Segway in 2011.
US talk show host Ellen DeGeneres fell of a Segway backwards while rehearsing her monologue before a show in 2010.
A cameraman riding a Segway ran over Usain Bolt in 2015 as the Jamaican sprinter did a victory lap after winning a 200-metre race in Beijing. Bolt wasn't injured and later joked about the incident.
This article first appeared on mobile.abc.net.au
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