Lyft, the popular U.S. ride-hailing firm, has recently made a significant move by announcing its acquisition of European taxi app Free Now in a deal worth 175 million euros ($199 million). This marks Lyft’s first foray into the European market, with the deal expected to be finalized in the second half of 2025. Once the acquisition is complete, the combined entity will cater to over 50 million annual users.
Originally founded in 2009 as myTaxi, Free Now is a ride-hailing platform based in Hamburg, Germany. Since 2019, the company has been jointly owned by German automotive giants BMW and Mercedes-Benz. Operating in over 150 cities across nine countries, including Ireland, the U.K., Germany, and France, Free Now offers a range of mobility services beyond traditional taxis, such as e-scooters, e-mopeds, and e-bikes.
According to company data, Free Now has been profitable in terms of Earnings Before Interest, Debt, and Amortization, generating over 1 billion euros in gross bookings in 2024. This acquisition presents Lyft with an opportunity to expand its presence in the competitive European ride-hailing market, where it will face off against established players like Uber, Bolt from Estonia, and Gett from Israel.
In comparison to its domestic rival Uber, Lyft will be playing catch-up in Europe, as Uber first entered the U.K. market in 2012. Uber has faced regulatory challenges in the region, with London transport regulators attempting to ban the company twice over safety concerns. However, Uber was granted a new license to operate in the city in 2022, allowing it to continue serving customers in one of Europe’s largest markets.
Overall, Lyft’s acquisition of Free Now signals the company’s ambitions to expand globally and compete with established players in the European ride-hailing space. With a strong user base and a diverse range of services, Lyft is poised to make a significant impact in the region and provide consumers with more choices for their transportation needs.
