I think its gimmicky.
If you're going to bother with internal hub gearing, you might as well make it manual-- its even easier than shifting a derailleur and you don't need to be moving. Its not like automatic 2-speed shifting is solving a real problem.
Aside from the belt drive, this looks pretty close to the CityGlide that I have, and at a similar price (on sale). (The CityGlide lists around CA$799, and I got mine at a bike show for CA$450; I’ve spent more since then, including getting fenders.) If I didn’t already have a two-speed automatic, I’d probably look at this seriously.
I also have a Dahon (Speed P8) that I use in the winter, although I might be using the Norco a bit this winter. When I replace the Dahon, I’m strongly considering a Montague full-sized folding bike.
I think there also is an old Shimano design, but that was 3 or 4 speed.
Edit: Actually I think the main draw was the continuous gear ratios you got, somewhat comparable to a CVT
Belts may not have pins, but it still needs to simultaneously stretch and compress to go around pullies. The deformation and friction losses add up.
With the solar-powered EV the fact that belts lend themselves to a simple and reliable CVT (constant velocity transmission) probably made up for drive train losses. They could run the motor at the optimal RPM regardless of speed, which can make a huge difference.
With bicycling 'race bike image' and fashion plays a huge role in what people are willing to buy.
People tend to want to spend the money on aping 'Tour De France' bicycles. So high seats and low bars for a 'racing position'. Clipless peddles, high dollar light-weight components... Especially going from 32 spoke wheels to as few as 8 or even 4 spokes are all symptoms of this trend.
And that's just road bikes. Mountain bikes have their on trends with the heavy suspension components used for downhill that soak up all the energy from the rider, etc.
It's the bicycle equivalent of trying to use a Nascar or Class B Rally car for getting groceries. You end up with a really expensive, fragile, high-maintenance, really uncomfortable bike totally inappropriate for touring/commuting/trail riding.
Belt drives don't have a place in racing, so they usually don't have a place in most people's bicycles. The reality is that belts drives are a trade off between maintenance and efficiency.
This Ikea bicycle uses a 2-speed automatic geared hub with belt drive. It features built-in lights and a very upright riding position. It has front disk brake and rear coaster brake (you have to peddle backwards). It looks fairly heavy and ruggedly built.
The advantage of this is that it offers very simple controls and should be extremely low maintenance. It should accept abuse and neglect and run for a long time.
So things like... A family bicycle for running to the local store. Going on flat, level trails. It would be very nice for a 'campus bike' for universities or corporate areas were you spend time going from one building to another. Rental bikes.
It should lend itself to any situation were you are dealing with fairly flat ground, leisurely pace, and multiple people sharing the bicycle.
It won't ruin clothing, it won't spray water and dirt everywhere. You pants are not going to get caught in the gearing. You are not going to have rusted chains or dragging brakes. If it falls over you don't need to un-bend things or re-adjust derailleurs, etc.
The things to worry about this is the same for most Ikea products: Non-standard components, sizing and shockingly cheap components that sabotage the rest of the product. if it uses rugged and standard sizing/components for everything then it will probably be awesome... if not then it could be a turd.
They give the weight as 16kg, which I think is fairly light for a bicycle of this type. Most people would add the basket and rear rack though.
They will still be disappointed when they get this one out of the garage next summer to find the tyres are flat and splitting.
I do get the impression bike tires have gotten better over the years, because I don't remember tires being that robust in my childhood (but, well, memory and all...).
The trade off is that they're somewhat heavier and have more rolling resistance than a good air-filled tire.
Downsides ... unlike an easy chain repair, you can't repair a belt in the very rare case it breaks. So you carry a spare on a tour. There are suggestions that frictional losses are higher with belt versus chain, though. And belts are apparently weaker when twisted or laterally flexed than chains, so storage and initial setup is more critical.
The transmission efficiency is probably nothing compared to the IGH and it's weight.
Fyi, the accepted horsepower-to-belt ratio for motorcycles is around 100hp for every inch of belt width. Beyond that, stretch and slipping become an issue no matter the material. Thats why sportbikes have stuck with chains.
http://glendalecycles.com/bike-technology/chainless-shaft-dr...
They seem to be competing with the "Gates Carbon Drive", here: http://www.gatescarbondrive.com/
I know nothing of bicycles, but I do recall when automakers started replacing timing chains with timing belts. The results weren't always great, especially with interference engines where misaligned timing means bent valves.