Lyft has introduced its acquisition of German mobility platform FREENOW for €175 million, marking the U.S. firm’s most vital enlargement into the European market thus far. The deal, confirmed on 16 April 2025, includes buying FreeNow from its present house owners, BMW and Mercedes-Benz.
This marks the tip of FreeNow’s standing as a European-owned platform and comes shortly after Bolt acquired the Danish ride-hailing service Viggo in March.
“We’re on an formidable path to construct the perfect, most customer-obsessed mobility platform on the earth, and coming into Europe is a crucial step in our development journey,” stated David Risher, CEO of Lyft. “We discovered the proper companion in FREENOW and might be taught so much from the crew. FREENOW’s local-first strategy mirrors Lyft’s values and embodies our function — to serve and join.”
FreeNow operates in over 150 cities throughout 9 European nations, together with main hubs just like the U.Ok., France, Germany, Italy, and Spain. The corporate presents a variety of providers, from conventional taxi bookings to e-scooter leases and car-sharing choices. In 2024, FreeNow achieved break-even standing, with a 13% year-on-year income improve, primarily pushed by its taxi operations.
The acquisition is anticipated to just about double Lyft’s addressable market, increasing from roughly 161 billion to over 300 billion private car journeys yearly.
Lyft goals to faucet into the largely offline European taxi trade, the place practically half of taxi rides are nonetheless booked with out digital platforms.
“Virtually half of the taxi trade in Europe continues to be offline. So it’s additionally the place a number of development potential comes from,” detailed FREENOW CEO Thomas Zimmermann.
In Barcelona, FreeNow established its first innovation centre outdoors Germany, highlighting town’s strategic significance within the firm’s European operations.
Lyft plans to keep up the FreeNow model and its present providers throughout Europe. Customers can anticipate improved experience allocation speeds and new functionalities, with the flexibility to e book providers by both the Lyft or FreeNow apps, no matter whether or not they’re in Europe or the US.
The acquisition is anticipated to shut within the second half of 2025, pending regulatory approvals.
“Joining forces with Lyft is a strong step ahead for FREENOW and marks the start of an formidable new section—one the place we strengthen our function as a number one pressure in European mobility,” stated Zimmermann.
“Lyft’s robust, customer-first monitor report aligns completely with our deep roots within the taxi trade, and collectively we are going to push boundaries and lift expectations for fleet house owners, taxi drivers, and riders throughout the continent. We stand with the trade—not above it—and stay proud companions of the neighborhood. This collaboration is about combining our strengths, studying from one another, and scaling what works greatest. We sincerely thank our former shareholders for his or her belief and enduring partnership all through the years,” he added.
