Transportation

Lyft Acquires FREENOW for $197M to Enter European Market

Ken Metral

16 Apr 2025 — 1 min read

Credit: FREENOW,

Lyft has announced its first foray into the European market with a $197 million cash acquisition of FREENOW, a leading multi-mobility platform headquartered in Germany. The deal, which will see Lyft acquire FREENOW from BMW and Mercedes-Benz Mobility, marks a strategic turning point for the U.S.-based ride-hailing company.

Founded in 2012, Lyft has traditionally limited its operations to the United States and Canada. This move positions it to go head-to-head with global rival Uber in Europe — a market Lyft has, until now, left untouched.

FREENOW currently operates in nine countries and over 150 cities, including major urban centers in Germany, the UK, France, Italy, and Spain. The acquisition, expected to close in the second half of 2025, will not only extend Lyft’s geographical reach but significantly expand its market potential. According to Lyft, the merger will nearly double its total addressable market to more than 300 billion annual personal vehicle trips and add approximately $1.14 billion in annualized gross bookings.

“This is a major leap forward,” said Lyft CEO David Risher. “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. We found the perfect partner in FREENOW and can learn a lot from the team.”

FREENOW has recently sharpened its focus on its taxi operations, achieving 13% year-on-year growth and reaching break-even, signaling solid operational momentum as it transitions under Lyft’s ownership.

BMW and Mercedes-Benz Mobility, FREENOW’s current co-owners, expressed confidence in the deal and reiterated their strategic shift toward electrification, artificial intelligence, and decarbonization.

Lyft emphasized that there will be no immediate changes to the FREENOW user experience, but hinted at future synergies, including cross-platform access for riders and drivers in both North America and Europe.

The acquisition not only gives Lyft a crucial foothold in Europe but also sets the stage for deeper global integration of urban mobility services — a potential game-changer in the increasingly competitive ride-hailing landscape.

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