April 17, 2025 - In a bold move to expand beyond its home turf, Lyft has announced the acquisition of European mobility platform FreeNow from German automotive giants BMW and Mercedes-Benz for €175 million (approximately $198.4 million).
This strategic acquisition marks Lyft’s entry into the European ride-hailing market, a long-anticipated step as the company looks to scale amid intense competition from Uber Technologies (UBER.N) in North America.
FreeNow, which operates in over 150 cities across nine European countries, provides a wide range of services including traditional taxi rides, e-scooter rentals, and car-sharing options. With a presence in major urban hubs such as London, Paris, Frankfurt, and Milan, the platform significantly broadens Lyft’s reach.
“We’re entering Europe at a good price and, more importantly, at a great time,” said David Risher, CEO of Lyft. “We’re in a strong financial position and ready to grow.”
The acquisition nearly doubles Lyft’s addressable market, expanding it from approximately 161 billion to over 300 billion personal vehicle trips per year. FreeNow has also demonstrated strong performance, reporting break-even status in 2024 following a 13% year-over-year revenue increase, largely driven by its focus on taxi operations.
“Almost half of Europe’s taxi industry is still offline,” noted Thomas Zimmermann, CEO of FreeNow. “That’s where a significant portion of growth potential lies.”
However, Lyft’s European expansion won’t be without challenges. The company will go head-to-head with established players like Uber and Estonia’s Bolt Technology, both of which already have deep market penetration across Europe.
In addition to market competition, regulatory pressure in Europe is intensifying. Authorities are increasingly requiring ride-hailing firms to provide benefits like minimum wage guarantees and holiday pay for drivers. Bolt recently introduced such benefits in the UK, setting a precedent that Lyft may also need to follow.
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