Two major potential markets for golf car-type (GCT) vehicles are on the verge of a dramatic upward climb in the next two to three years. These markets are the short-distance driving (SDD) and the last-mile delivery (LMD) segments. What are some of the obstacles that lie in the path of growth in these areas, whereas other types of vehicle transport have prospered?
One of the obstacles is clearly the heightened operational liabilities that are inherent in the evolution toward operating on public roads and streets and in municipal environments in general.
New insurance platform now available to LSVDA members
In a press release from the LSVDA, dated March 31, Michael Alexander, LSVDA Executive Director, announced that the Christensen Group has become a Platinum sponsor of the organization, bringing to organization members a comprehensive insurance platform called LSVDA Shield. From the press release:
“As the industry continues to expand into street-legal, fleet, rental, and commercial applications, the complexity of risk and dealer commercial insurance has increased significantly. Dealers are navigating evolving liability considerations, operational risks, and regulatory requirements across multiple use cases. LSV Shield was developed to meet those challenges head-on, offering specialized protection that traditional insurance markets have not been able to provide.”
Alexander goes on to say, “Dealers across the country are navigating a fragmented insurance landscape. The Christensen Group brings a structured approach to risk management that can help bring clarity and consistency to an area that has lacked both.”
This article lays out some additional obstacles to full market expansion and points to the role of the LSVDA in effectively dealing with these issues.
Issue #1 – Dealing with non-traditional markets
GCT vehicles are historically closely associated with the sport of golf. Even though now, the non-golf market is by far the highest revenue producer for dealers and manufacturers. The category of street-legal golf cars is fully formed, and the vehicles are categorized as LSVs. These vehicles are, nonetheless, characterized as golf cars with open canopies and are drivable in good weather, for the most part. If it’s raining or snowing, the conventional vehicle is used to get to the local grocery store, pharmacy, or 7-Eleven. And even in fair weather, the LSV may not be viable for a number of reasons, which are addressed below.
Dealerships are used to dealing with the traditional golf cars and LSVs. When it requires initiative and entrepreneurship to move into the SDD and LMD segments, the incentives have apparently been insufficient both at the dealer and corporate levels to make the necessary strategic moves.
Issue #2 – Dealing with a plethora of new and different stakeholders
Leaving the traditional market of selling products and providing services to the golfing community and venturing onto public roads and the community at large, interactions become more complex. Stakeholders multiply and may have conflicting interests. For example, owners or prospective owners of GCT vehicles may want untethered access to public roads, whereas other stakeholders, such as municipal officials, police, neighborhood representatives, etc. may offer resistance. If fleet operations are involved, collaborations with other private sector entities may be involved.
Market expansion in either the SDD or LMD segments will require dealing with the complexities arising from this collective of stakeholders.
Issue #3 – Addressing the increasing complexities of the urban/suburban environment
Doing business in the public road environment involves additional risks. Operations in golf communities and neighborhoods has the benefit of being far more controlled and less diversified than public roads and municipal settings. The latter are, in fact, increasing in complexity. One source of the growing complexity is the conversion of office buildings into residential locations.
Focus on office to residential conversions
The move to revitalize urban centers by converting office space to residential units is surging across the country, not only in major cities such as New York, Chicago, and Los Angeles, but also in smaller cities, such as Austin, Texas. The movement is sparked by the dearth of affordable housing, and quite possibly by the increase in homelessness, which tends to be concentrated in urban areas.
Stories about these conversion efforts often focus on issues of construction cost, reform of zoning regulations, and providing the necessary funding incentives, and do not put much emphasis on the impact of transit systems and delivery services.
Moreover, in parallel with changes in the urban landscape is the heated competition among major package delivery service providers, e.g., Amazon, USPS, and Walmart in the market for same-day delivery capabilities
Opportunities in urban changes?
With urban centers becoming even more densely populated as a result of these conversions, the burdens on personal movement from point A to point B, as well as short-distance delivery services, are clearly going to be impacted. The competition among package goods delivery companies is likely to be even more intense. Is there an opportunity for golf car dealers and manufacturers arising out of this rapidly evolving urban environment? The short answer is, yes, but it will require stepping out of the conventional shoes into a new set of boots – this on the part of dealers as well as manufacturers. The LSVDA will be a key facilitator in this process and will become progressively more influential as its membership and supporting sponsors increase.
In addressing the obstacles noted, the LSVDA will play a key role
The LSVDA, launched at the 2026 PGA Show provides a key interface between the industry and the public. The LSVDA is ideally suited to deal with the diversity of concerns of local stakeholders across the country and with various regulatory issues that are in play. These latter issues must be addressed on all levels, local, county, state, and national, as they impinge on and affect local area markets.
The LSVDA was created, in part, to deal with these issues, and the timing of its appearance on the scene could not be more opportune. You can get more information on the full scope of goals, interests, and activities at www.LSVDA.com.
