U.S.-based ride-hailing company Lyft has announced its entry into the European market through the acquisition of German mobility platform Freenow. The deal, worth €175 million, was made with former owners BMW Group and Mercedes-Benz Mobility.
Lyft, which trades on the Nasdaq and is a key competitor to Uber in the U.S., called this move its “most significant expansion outside North America.”
Lyft CEO David Risher said the acquisition marks a major step in the company’s global growth.
“We’re on an ambitious path to build the best, most customer-obsessed mobility platform in the world, and entering Europe is an important step in our growth journey,” he said.
“We found the perfect partner in Freenow and can learn a lot from the team. Freenow’s local-first approach mirrors Lyft’s values and embodies our purpose – to serve and connect.”
With the merger, the combined company will serve over 50 million riders across Europe and North America. Freenow is expected to add approximately €1 billion in gross annual bookings to Lyft’s revenue.
Freenow will remain focused on its taxi services, which are currently available in more than 150 cities across nine European countries, including Germany, Spain, Ireland, and the UK. In 2024, taxi rides made up 90% of Freenow’s bookings. The company said taxis would “continue to be the backbone” of its business.
Besides taxis, Freenow also offers a wide range of transport options, such as private hire vehicles, ridesharing, car rental, public transport, and micro-mobility services like electric scooters, bikes, and mopeds.
Freenow CEO Thomas Zimmermann welcomed the acquisition.
“Joining forces with Lyft is a powerful step forward for Freenow and marks the beginning of an ambitious new phase – one where we strengthen our role as a leading force in European mobility,” he said.
“Lyft’s strong, customer-first track record aligns perfectly with our deep roots in the taxi industry. Together we will push boundaries and raise expectations for fleet owners, taxi drivers, and riders across the continent.”
A Freenow spokesperson told BTN Europe that there will be no immediate changes to how Freenow operates.
“It will continue to operate as it does today,” the spokesperson said. “Over time, the companies will focus on integration so that riders can seamlessly use either app, whether in North America or Europe.”
The transaction is expected to close in the second half of 2025, subject to standard regulatory approvals and closing conditions.
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