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What does the 'eDrive' button do in a BMW i8?

I recently purchased a BMW i8 and noticed that there is an 'eDrive' button on the center console. Can someone explain what this button does and when I should use it? I want to make sure I am getting the most out of my i8's technology.

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The 'eDrive' button allows you to switch between different driving modes. When in 'eDrive', the car will use only the electric motor, conserving fuel. This is great for city driving or short trips. However, if you want more power and performance, you can switch to 'Sport' mode. This will activate both the electric motor and the gasoline engine for maximum performance.

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