Lyft to purchase taxi app FREENOW for $197M to enter Europe

Trip-hailing large Lyft stated it has agreed to accumulate FREENOW, a German multi-mobility app with ride-hail at its core, from BMW and Mercedes-Benz Mobility for about $197 million in money. 

The acquisition opens up the European market to Lyft for the primary time. The corporate has solely operated within the U.S. and Canada because it launched in 2012, in comparison with its largest rival Uber, which operates globally. 

FREENOW operates in 9 nations and greater than 150 cities throughout Austria, France, Germany, Greece, Eire, Italy, Poland, Spain and the UK. The transaction is anticipated to shut within the second half of 2025. 

The transfer comes just a few months after FREENOW shared that its strategic give attention to its taxi enterprise resulted in year-on-year development of 13%, and that it was hitting break-even. 

Lyft stated the merger would practically double its complete addressable market to greater than 300 billion private automobile journeys per 12 months, and improve annualized gross bookings by about $1.14 billion. 

“We’re on an bold path to construct the most effective, most customer-obsessed mobility platform on this planet, and coming into Europe is a vital step in our development journey,” stated David Risher, CEO of Lyft, in a press release. “We discovered the right accomplice in FREENOW and may be taught lots from the crew. FREENOW’s local-first strategy mirrors Lyft’s values and embodies our goal — to serve and join.”

In a press release this week, BMW and Mercedes-Benz Mobility stated they might proceed to give attention to their core operations along with electrification, AI and decarbonization. 

Lyft stated there will likely be no instant modifications to FREENOW’s buyer expertise, however that “over time, new advantages will likely be made obtainable to FREENOW drivers and riders.” It stated the 2 corporations will give attention to integration so riders can use both app after they’re in North America or Europe.