Fallbrook Technologies stated that they had the solution to the problems with gears, and it seems like they were correct in their assumption. The technology used is uncommon in bicycles. Rather than match up two sets of gears to achieve a certain ratio, their is only one shifter (if it can even be called that) that affects the balls inside the rear wheel of the bicycle. When you turn the dial, it changes the contact that is made, and makes it easier or harder to pedal.
I had a chance to test-ride a bicycle outfit with this technology out at Interbike. What struck me the most about the bicycle was the changing of "gears" at a complete stop. They had a bicycle set up on a trainer and told me to shift to the highest setting, as if you were going downhill. I was told to come to a complete stop and to shift to the lowest setting without pedaling, then start to pedal. To my amazement, there was none of the common gear jumping to get there.
Fallbrook Technologies has key partnerships, such as Ellsworth Bicycles, that will help spread the technology to the greater public. It is probably only a matter of time before more bicycles start showing up with the continuously variable transmission made by Fallbrook.
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I read about this in MTB action I think. I agree, it's very interesting. I wonder how heavy it is?