Lyft Acquires FreeNow for $197M to Expand into Europe

Lyft Expands into Europe with FREENOW Acquisition

Lyft, a leading ride-hailing service, has announced a definitive agreement to acquire FREENOW, a prominent multi-mobility application based in Germany.

The purchase, valued at approximately $197 million in cash, will be made from BMW and Mercedes-Benz Mobility.

First European Market Entry for Lyft

This acquisition marks Lyft’s initial foray into the European market. Since its inception in 2012, the company has exclusively operated within the United States and Canada.

In contrast, its primary competitor, Uber, maintains a global operational presence.

FREENOW’s Extensive European Network

FREENOW currently provides services across nine European countries and in over 150 cities.

These countries include Austria, France, Germany, Greece, Ireland, Italy, Poland, Spain, and the United Kingdom.

The completion of this transaction is anticipated during the second half of 2025.

Recent FREENOW Performance

Just months prior to the announcement, FREENOW reported a 13% year-over-year growth rate, driven by a strategic concentration on its taxi services.

The company also indicated it had reached the break-even point in its financial performance.

Impact on Lyft’s Market Reach

Lyft projects that this merger will effectively double its total addressable market.

This expansion will bring the potential market to over 300 billion personal vehicle trips annually.

Annualized gross bookings are also expected to increase by roughly $1.14 billion.

Statements from Leadership

“Entering Europe represents a significant stride in our ambition to establish the premier, most customer-centric mobility platform globally,” stated David Risher, CEO of Lyft.

“FREENOW is an ideal partner, and we anticipate valuable learning opportunities from their team.

Their localized approach aligns with Lyft’s core values and reinforces our commitment to connection and service.”

BMW and Mercedes-Benz Mobility’s Future Focus

BMW and Mercedes-Benz Mobility jointly announced their continued dedication to their primary business operations.

Their focus will also encompass advancements in electrification, artificial intelligence, and decarbonization initiatives.

Integration and Future Plans

Lyft assures that there will be no immediate alterations to the FREENOW customer experience.

However, the companies plan to integrate their platforms over time, allowing users to utilize either application while traveling in North America or Europe.

New benefits are expected to become available to both FREENOW drivers and riders as integration progresses.