Ride-hailing platform Lyft will establish its presence in Europe by acquiring Germany-based mobility provider FreeNow for €175 million.
The deal is anticipated to closed in the second half of this year, “subject to customary closing conditions,” Lyft said in a release.
Previously, Lyft’s ride-hailing operations were exclusive to the United States and Canada, but with this acquisition they will be available in a total of 11 countries, including Ireland, the United Kingdom, Germany, Greece, Spain, Italy, Poland, France and Austria.
Founded in 2009 and currently owned by BMW Group and Mercedes-Benz Mobility, FreeNow operates in more than 150 European cities. While it's described as a “taxi-first business," the platform also allows users to book private hire vehicles, care sharing, e-scooters and e-bikes, among other options.
In 2024, taxis accounted for 90% of the app’s gross bookings, and taxis will remain the “backbone of FreeNow’s business,” Lyft said in a release. There will be no immediate change to the FreeNow customer experience, but additional benefits—such as additional earnings transparency for drivers and more consistent pricing for riders—will be added in the future, Lyft said.
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The company also noted the acquisition will double its total addressable market to over 300 billion personal trips annually and increase annualized gross bookings by €1 billion.
“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,” said David Risher, CEO of Lyft. “We found the perfect partner in FreeNow and can learn a lot from the team. FreeNow's local-first approach mirrors Lyft's values and embodies our purpose—to serve and connect.”
According to Lyft, approximately half of taxi bookings in Europe currently happen offline, but customers are “hungry” for access to online taxi bookings.
“Joining forces with Lyft is a powerful step forward for FreeNow and marks the beginning of an ambitious new phase—one where we strengthen our role as a leading force in European mobility,” said FreeNow CEO Thomas Zimmermann.
“Lyft's strong, customer-first track record aligns perfectly with our deep roots in the taxi industry, and together we will push boundaries and raise expectations for fleet owners, taxi drivers, and riders across the continent. We stand with the industry—not above it—and remain proud partners of the community. This collaboration is about combining our strengths, learning from each other and scaling what works best.”
Lyft said the move will “immediately fuel its growth strategy” and better position it for future partnerships.
While Uber—which operates globally—remains the Lyft's biggest competitor, Estonia-based mobility app Bolt is also growing in Europe.
Bolt made headlines in recent years after securing several multi-million dollar rounds of funding. Last month, it expanded operations by acquiring Denmark-based electric vehicle ride-hailing service Viggo. Also in March, Bolt introduced a new feature for flight tracking, providing users with rides as soon as they arrive at their destination airport.