Lime profits surge as England embraces the humble ebike

Lime’s UK business is booming, with average monthly users rising 31% to almost 700,000 in 2025. The company added more than 4,500 ebikes and scooters, taking its fleet to almost 38,000, while sales rose by a third to £148m and profits more than doubled to £4.7m. Expansion into cities including Oxford and Nottingham has helped drive growth, but the rapid rise of rental bikes has also brought concerns about safety and blocked pavements. Local authorities now have greater powers to regulate operators.

Lime bike profits double as rider numbers surge in England | Ebikes | The Guardian

1. Explain two reasons why Lime's profits increased by more than its sales in 2025.

2. Using a demand and supply diagram, analyse how an increase in the number of Lime bikes could affect the market for rental bike journeys.

3. Discuss the positive and negative externalities associated with the increased use of Lime bikes.