Lyft acquires FREENOW to expand into European market

Lyft (Nasdaq: LYFT) announced a definitive agreement to acquire FREENOW, a leading European multi-mobility platform known for its taxi-first approach, from BMW Group and Mercedes-Benz Mobility for approximately €175 million ($197 million) in cash. The deal is expected to close in the second half of 2025.

FREENOW operates across nine European countries and over 150 cities, including Dublin, London, Berlin, and Madrid. It will continue to operate independently post-acquisition, retaining its leadership and staff. This acquisition marks Lyft’s most significant international expansion, extending its presence to 11 countries and nearly doubling its total addressable market to over 300 billion personal vehicle trips annually.

Strategic highlights:
- Adds €1 billion in annualized gross bookings
- Strengthens Lyft’s position in the European taxi market, where about half of taxi bookings are still made offline
- Expands rider base to over 50 million annual riders
- FREENOW will continue to focus on taxi services, which made up 90% of its gross bookings in 2024
- Enhances global capabilities with cross-platform features planned across both apps

Leadership statements:
David Risher, Lyft CEO, emphasized the customer-first and local approach shared by both companies.

Thomas Zimmermann, FREENOW CEO, described the merger as a powerful step for growth and innovation while affirming support for taxi fleets and drivers.

The acquisition supports Lyft’s broader strategy of diversifying revenue and expanding international footprint, following a record year in 2024 with strong financial results.

Lyft will provide further details in its Q1 2025 earnings call in May, and a presentation is available at investor.lyft.com.