Lyft has announced its entry into the European market through the acquisition of German ride-hailing provider FreeNow. The deal is valued at €175 million and is expected to close in the second half of this year, pending standard regulatory approvals.
Until now, Lyft operated only in the United States and Canada. With this acquisition, its services will expand to 11 European countries, including Germany, Ireland, the United Kingdom, Greece, Spain, Italy, Poland, France, and Austria.
FreeNow was founded in 2009 and is currently owned by BMW Group and Mercedes-Benz Mobility. It operates in over 150 cities across Europe. While FreeNow is known primarily as a taxi platform, it also allows users to book private hire vehicles, car sharing, e-scooters, and e-bikes.
Lyft said that in 2024, taxis made up 90% of FreeNow’s gross bookings. Taxis will continue to be the main focus of FreeNow’s services. The company stated there will be no immediate changes to the customer experience. However, new features—such as clearer earnings information for drivers and more stable pricing for passengers—will be introduced over time.
The acquisition is a major growth move for Lyft. It is expected to double the company’s total addressable market to more than 300 billion personal trips per year. The deal is also projected to increase Lyft’s annual gross bookings by €1 billion.
“This is a big step forward,” said Lyft CEO David Risher. “We’re building a customer-focused mobility platform, and expanding into Europe is a key part of that journey. FreeNow is the ideal partner. Their local-first approach fits perfectly with our mission to serve and connect people.”
Lyft also pointed out that about half of all taxi rides in Europe still happen offline. The company believes that more European customers want the convenience of online booking options.
FreeNow CEO Thomas Zimmermann also expressed optimism about the deal. “Joining forces with Lyft is a powerful move. It begins an exciting new chapter for FreeNow,” he said. “Lyft’s customer-first focus matches our long-standing ties to the taxi industry. Together, we will raise standards for drivers, passengers, and fleet operators across Europe. We’re here to support the industry, not stand apart from it.”
Lyft said the acquisition supports its overall growth plan and strengthens its position for future partnerships.
In Europe, Lyft faces strong competition. Uber remains its biggest global rival. However, Estonia-based mobility platform Bolt is also expanding rapidly in the region. Bolt has raised several large funding rounds in recent years. Last month, it acquired Danish electric vehicle ride-hailing service Viggo. Bolt also launched a flight tracking feature in March, which offers rides to users as soon as they land at the airport.
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