The Niagara Falls Review

Shopify powering hoverboard craze

- CLAIRE BROWNELL Financial Post

TORONTO — Outside his condo in downtown Toronto — which is also his sales centre, warehouse and logistics hub — Darren Pereira is giving a hoverboard lesson.

A young woman steps onto the two-wheeled scooter, crying out and laughing when it instantly starts to move. “There you go. Oh, you’ve got a good strong core!” Pereira says, walking backwards in front of her so she has a shoulder to grab if she loses her balance from what he calls “hover legs,” the shaky feeling people experience when they’re trying a hoverboard for the first time.

“Wherever you look, that’s where you’re going to go. It’s freaky, huh?” he says. “Another safe lesson. Take a break now.”

Pereira, 40, is a hoverboard entreprene­ur — as well as “a publicist, deal negotiator, artist liaison, iPhone app architect, customer service manager, merchandis­e director, creative writer, shipping & tour manager,” according to his LinkedIn profile. He’s decked out, head-to-toe, in gear from a clothing line he also promotes.

The woman getting the hover lesson heard through a friend that she could try out the gadget popularize­d by the Instagram and Twitter accounts of Justin Bieber, Kendall Jenner and Wiz Khalifa, so here she is, at 10 a.m. on a Monday. Such is the allure of the hoverlife.

When Pereira saw the self-balancing motorized scooters at a conference last February, he knew they were going to be the next big thing. So he tracked down Chinese manufactur­er Cube Electronic­s Tech, placed an order for five hoverboard­s and set up a website to sell them. Just like that, Pereira was a hoverboard retailer, and Hüüvr (pronounced hover) was born.

Hoverboard­s may be this year’s hottest Christmas toy, but they can’t be found at most major stores, for reasons ranging from patent disputes to concerns over personal injury liability to their batteries’ annoying tendency to catch fire and explode. Just this week, Ama- zon.com Inc. warned customers to throw away certain models linked to safety concerns.

But behind the scenes, a Canadian company is helping small merchants, such as Pereira, willing to fill the void left by the likes of Walmart Inc. and Target Corp.

That company is Ottawa’s Shopify Inc., which provides would-be merchants with the software to set up an online store, accept payments and track orders, for as little as $9 a month. The company says about 200 of Shopify’s 200,000-plus stores are selling hoverboard­s, including modahoverb­oards.com (which bills itself as a vendor of “designer hoverboard­s for exquisite taste”), and hoverwheel­z.net.

Pereira says huuvr.com is currently powered by a mix of PayPal and some do-it-yourself code, but he’s planning to start using Shopify next year as his selection of products expands. If he had to rely on bricks- and- mortar stores to sell hoverboard­s, he says his business couldn’t exist.

“No way,” Pereira says.

“It wouldn’t be possible. Thank God for online merchants.”

Harley Finkelstei­n was once one of those online merchants, putting himself through law school selling T-shirts on the web. Today, he’s Shopify’s chief platform officer, in charge of sales and business developmen­t. In good weather, he commutes to work along the Rideau Canal on a ZBoard, a motorized skateboard that was a predecesso­r to the hoverboard.

Finkelstei­n says it’s been exciting to watch social media fuelled interest in hoverboard­s grow and Shopify sites selling them grow along with it. He says there are plenty of examples of people with a good idea and an entreprene­urial spirit using Shopify to form their own distributi­on channel, but the hoverboard phenomenon is unique.

“This odd piece of technology entered our lives like a bat out of hell,” Finkelstei­n says. “By the time we realized what was happening, everyone we knew was talking about it.”

Finkelstei­n says the changing world of e-commerce is good for everyone except the middlemen — retailers who aren’t adding much value beyond acting as distributo­rs. He cites the common experience of trying to ask an employee a question about a product at a big box store and being met with a blank stare.

“A lot of these hoverboard­s are coming directly out of the factory and into the hands of consumers,” he says. “If I have a problem with the hoverboard, I’m able to call the person who actually had some- thing to do with building the hoverboard, not some random, thirdparty intermedia­ry.”

But in a world where anyone can buy the latest trendy gadget directly from a factory in Shenzhen, China, and set up a Shopify site to sell it in minutes, retailers aren’t the only potential losers.

With new stores popping up as quickly as lawyers can send ceaseand-desist letters, anyone laying claim to having invented the trendy gadget is playing a high-stakes version of Whack-a-Mole.

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 ?? LAURA PEDERSEN/ NATIONAL POST ?? Shiva Peter, left, and Jessica Tree try out one of Darren Pereira’s Hüüvr hoverboard­s in Toronto earlier this week.
LAURA PEDERSEN/ NATIONAL POST Shiva Peter, left, and Jessica Tree try out one of Darren Pereira’s Hüüvr hoverboard­s in Toronto earlier this week.

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