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 homeowners, 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 one of the best, most customer-obsessed mobility platform on the planet, and getting into Europe is a vital step in our development journey,” mentioned David Risher, CEO of Lyft. “We discovered the right companion in FREENOW and may study 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 international locations, together with main hubs just like the U.Ok., France, Germany, Italy, and Spain. The corporate provides a variety of companies, 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 business, the place almost half of taxi rides are nonetheless booked with out digital platforms.
“Virtually half of the taxi business in Europe remains to be offline. So it’s additionally the place a variety 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 take care of the FreeNow model and its present companies throughout Europe. Customers can anticipate improved journey allocation speeds and new functionalities, with the power to ebook companies via 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 robust step ahead for FREENOW and marks the start of an formidable new section—one the place we strengthen our position as a number one power in European mobility,” mentioned Zimmermann.
“Lyft’s robust, customer-first observe file aligns completely with our deep roots within the taxi business, and collectively we’ll push boundaries and lift expectations for fleet homeowners, taxi drivers, and riders throughout the continent. We stand with the business—not above it—and stay proud companions of the group. This collaboration is about combining our strengths, studying from one another, and scaling what works finest. We sincerely thank our former shareholders for his or her belief and enduring partnership all through the years,” he added.
