Lyft buys FreeNow to enter European market
Lyft is expanding its global footprint with the acquisition of FreeNow, a leading European mobility platform, from BMW and Mercedes-Benz for €175 million (about $198.4 million). This move marks Lyft's first significant incursion into Europe as it looks for new growth areas amid fierce competition from Uber in North America.
FreeNow, which operates in over 150 cities across nine European countries, provides a range of services including traditional taxi rides, e-scooter rentals, and car-sharing options. The platform, originally established as a joint venture by BMW and Mercedes-Benz, recorded a 13% year-on-year revenue increase in 2024 and achieved break-even status, largely driven by its taxi operations that account for roughly 90% of its gross bookings.
According to Lyft, the acquisition will nearly double its addressable market, boosting its potential from 161 billion personal vehicle trips per year to more than 300 billion. This sizable expansion opens doors to major European cities such as London, Paris, Berlin, Frankfurt, and Milan, further diversifying Lyft’s service offerings and customer base.
Despite these promising prospects, Lyft faces stiff competition from established European players like Uber and Estonia-based Bolt, both of which have a solid grip on the regional market. Moreover, elevated regulatory demands in Europe—pushing for improved driver benefits such as minimum wage guarantees and holiday pay—present an additional challenge to profitability.
Lyft's CEO, David Risher, stated that this strategic acquisition is a key step toward building what he envisions as the world’s most customer-obsessed mobility platform. While FreeNow is set to retain its brand identity for now, discussions about potential rebranding may emerge during later integration phases. The transaction is expected to close in the second half of 2025, subject to necessary regulatory approvals, marking a pivotal milestone in Lyft’s ambitious expansion strategy.
