Lyft and Citi Bike’s Crossroads: Profitability, Sustainability, and Equity

by: Stuart L. Hart

Publication Date: August 19, 2026
Length: 16 pages
Product ID#: 8-400-577

Core Disciplines: Social Impact, Strategy & Management, Sustainability

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Description

Citi Bike, New York City’s only bike-sharing system, had become an integral part of the city’s mobility since its launch in 2013. Developed as a public-private partnership and privately funded through sponsorships, Citi Bike began as a solution to urban transportation challenges, offering affordable and sustainable options for short trips and connecting commuters to buses and trains. Over the years, it had expanded significantly under Lyft’s ownership, integrating electric bikes (e-bikes) and extending its service areas. Despite these achievements, Citi Bike now faces critical financial, operational, and strategic challenges, particularly in balancing its mission of sustainability and equity with financial sustainability.

Students look at the case through the eyes of fictional protagonist Nicole Jones, who in May 2023 has been promoted to chief of staff for Lyft’s Bikes & Scooters team during a turbulent period of leadership turnover. She reports directly to a new team boss and a new head of strategy and growth. Meanwhile, Lyft’s CEO has signaled shifting corporate priorities by laying off the chief sustainability officer and indicating he might sell off Citi Bike.

Jones faces critical questions: Can Citi Bike achieve its goals of expansion without compromising its mission of providing sustainable and equitable transport? How can it balance stakeholders’ expectations, including public officials, underserved communities, and investors, while remaining a cornerstone of New York City’s urban mobility? The decisions made at this juncture will shape Citi Bike’s future as a sustainable and accessible transportation solution.

Teaching Objectives

After reading and discussing the material, students should:

  • Understand how a company like Lyft might approach the question of how to raise capital and how it impacts a public-private partnership like Citi Bike.
  • Compare Citi Bike with other public monopolies such as utilities and telecommunications companies.
  • Position Citi Bike within the circular economy and the sharing economy – how does it compare to other subscription models?
  • Articulate the positive externalities of a micro-mobility/sharing program.
  • Apply the sustainable value framework to the Citi Bike case and understand how it deployed a Base of the Pyramid (BoP) strategy to create a bike-share market to meet urban micro-mobility needs.