Network for Business Sustainability Framework

Applying the NBS sustainability framework to Lime, an electric scooter and bike-sharing services provider

Kahn (2018) considers innovation as a process of bringing new ideas, methods, products, and solutions to the market. It entails transforming concepts into tangible outcomes that have a positive impact and value. Lime, an electric scooter and bike-sharing services provider is one of the companies pursuing innovation within the transportation industry. The company leverages its strengths to build a “future where transportation is shared, affordable, and carbon-free” (Lime, 2024, par. 1). This paper uses the Network for Business Sustainability (NBS) model to illustrate the operational optimization, organizational transformation, and systems building aspects of Lime’s innovation. The company’s entire innovation model is summarized below.

Table 1: Lime’s Journey Towards sustainable-led innovation (Bessant & Tidd, 2015)

Table 1 summarizes Lime’s journey towards sustainable-led innovation, which entails three major steps, operational optimization, organizational transformation, and systems building.

Operational optimization

This step requires Lime to do what it does but much better. The company has deployed an eco-efficiency approach that focuses on building a future where transportation is carbon-free, affordable, and shared. To achieve this, the company innovates to “do less harm” to the environment. Incremental improvements focus on eco-efficiency and compliance with regulations in the transportation sector. For example, the company offers reliable and convenient short-term rentals of electric bikes and scooters at affordable prices. This service assists in reducing traffic congestion and pollution since e-scooters and e-bikes emit fewer greenhouse gases (Chien et al., 2023). Estimates by Chien et al. (2023) indicate that the use of e-scooters can reduce carbon emissions on our roads by up to 63%, due to reduced use of conventional vehicles, the consumption of less electricity per kilometer, and the use of clean energy. This implies that by offering e-scooters for rental, Lime helps reduce environmental pollution, which is caused by GHG emissions.

Organizational transformation

Lime, as an organizational transformer, believes that it can gain financially by serving new markets with sustainable solutions. The company has focused on providing affordable and carbon-free transportation to sustainability-conscious customers in over 200 cities in 30 countries. Examples of transformations from the company include disruptive solutions that alter the transportation habits of more than 200 cities across the world. In particular, rentals of electric bikes and scooters at affordable rates help the world transition to a future where transportation is not only affordable but also carbon-free. The organizational transformer aims to do good to customers, society, and the environment by providing innovative products and services that redefine urban mobility. The key outcomes of the organizational transformation include the creation of shared value for all stakeholders. However, a fundamental shift has had to occur at Lime to ensure effective organizational transformation. The company has had to focus and commit to delivering services that enhance the overall quality of life for users and contribute to the creation of a sustainable and shared urban mobility experience.

Systems Building

As a system builder, Lime sees itself as being part of society; its approach to systems building in particular revolves around societal change. The company collaborates with different stakeholders, including users, cities, and governments to co-create solutions that shape broader urban mobility systems. this is aimed at creating stakeholder-centric products, services, and business models that ensure the transition to a carbon-free future. Concerning innovation outcomes, engaging and co-creating urban mobility solutions with stakeholders create a net-positive impact on society. It creates products and solutions that are effectively adopted into the broader transportation networks to create meaningful change. For example, the use of e-scooters and e-bikes in over 30 different countries assists promote sustainable urban mobility solutions on a global level. However, Lime has to continue collaborating with internal and external entities to drive broader systemic change in the transportation industry.

Conclusion

In summary, Lime, an electric scooter and bike rental company, effectively aligns with the elements of the network for business sustainability. the company follows a journey that leads to sustainability-led innovation. The journey, as indicated by the NBS model, comprises three basic elements, namely operational optimization, organizational transformation, and systems building. As an operational optimizer, the company focuses on achieving eco-efficiency. This is achieved through the creation of energy-efficient and cost-effective e-scooters and e-bikes that do not emit greenhouse gases. The company, as a systems builder, collaborates with various stakeholders to promote sustainable urban mobility solutions on a systemic level.

References

Kahn, K.B., 2018. Understanding innovation. Business Horizons, 61(3), pp.453-460.

Chien, Y.H., Hsieh, I.Y.L. and Chang, T.H., 2023. Beyond personal vehicles: How electrifying scooters will help achieve climate mitigation goals in Taiwan. Energy Strategy Reviews, 45, p.101056.

Bessant, J. and Tidd, J., 2015. Innovation and entrepreneurship. John Wiley & Sons.

Lime. 2024. Who we are. https://www.li.me/about [accessed: January 26, 2024]