Ride-hailing Giant Lyft Acquires FREENOW for $197 Million
Ride-hailing giant Lyft has announced its acquisition of FREENOW, a German multi-mobility app with ride-hail at its core, from BMW and Mercedes-Benz Mobility for approximately $197 million in cash.
This strategic move marks Lyft’s entry into the European market for the first time, expanding its reach beyond the U.S. and Canada where it has been operating since 2012. In comparison, its main competitor Uber has a global presence.
FREENOW currently operates in nine countries and over 150 cities across Europe, including Austria, France, Germany, Greece, Ireland, Italy, Poland, Spain, and the United Kingdom. The acquisition is set to be finalized in the second half of 2025.
Earlier this year, FREENOW reported significant growth in its taxi business, achieving a 13% year-on-year increase and reaching a break-even point. This acquisition by Lyft is expected to nearly double its total addressable market to over 300 billion personal vehicle trips annually and boost annualized gross bookings by around $1.14 billion.
Lyft’s CEO, David Risher, expressed enthusiasm about the partnership with FREENOW, highlighting their shared values of customer-centric service and connection. He emphasized the importance of entering the European market as a key step in Lyft’s growth journey.
BMW and Mercedes-Benz Mobility, the previous owners of FREENOW, stated that they will continue to focus on their core operations, with a particular emphasis on electrification, AI, and decarbonization initiatives.
While there will be no immediate changes to FREENOW’s customer experience, Lyft plans to introduce new benefits for both drivers and riders over time. The integration of the two platforms will allow users to seamlessly switch between apps when traveling in North America or Europe.
