Lyft Expands into Europe: Acquires FREENOW Taxi App for $197 Million
Ride-hailing company Lyft is making significant strides in expanding its global presence by acquiring FREENOW, a German multi-mobility app centered around ride-hailing, from BMW and Mercedes-Benz Mobility for approximately $197 million in cash. This strategic acquisition marks Lyft’s entry into the European market, a venture that could reshape the competitive landscape of ride-sharing and mobility services.
Lyft’s Expansion into Europe
Previously, Lyft operated solely in the U.S. and Canada since its inception in 2012. This acquisition allows Lyft to tap into the European market, where FREENOW has established a strong presence.
About FREENOW
FREENOW operates in nine countries and over 150 cities, including:
- Austria
- France
- Germany
- Greece
- Ireland
- Italy
- Poland
- Spain
- The United Kingdom
The acquisition is anticipated to close in the second half of 2025, paving the way for new opportunities in the European ride-hailing market.
Strategic Growth and Financial Impact
FREENOW recently reported a robust year-on-year growth of 13% in its taxi business, achieving break-even status. This performance underlines its potential as a valuable asset for Lyft.
By merging with FREENOW, Lyft aims to:
- Nearly double its total addressable market to over $300 billion in personal vehicle trips annually.
- Increase annualized gross bookings by approximately $1.14 billion.
David Risher, CEO of Lyft, emphasized the importance of this partnership, stating, “We’re on an ambitious path to build the best, most customer-obsessed mobility platform in the world, and entering Europe is an important step in our growth journey.” He acknowledged FREENOW as a perfect partner, highlighting the alignment of their values and objectives.
Future Outlook for FREENOW and Lyft
In a recent statement, BMW and Mercedes-Benz Mobility confirmed their commitment to focusing on their core operations, along with advancements in electrification, AI, and decarbonization.
Lyft has assured that there will be no immediate alterations to FREENOW’s customer experience. However, as integration progresses, both companies plan to enhance the offerings for FREENOW drivers and riders. This collaboration aims to provide a seamless experience for users, whether they are in North America or Europe.
For more updates on Lyft and the ride-hailing industry, visit our Ride-Hailing News page.
To explore more about FREENOW, check out their official website.
