“Lyft Expands Across the Pond: Acquiring FREENOW for $197M”
In a bold move to conquer new territories, ride-hailing giant Lyft has announced its acquisition of FREENOW, a German multi-mobility app, from BMW and Mercedes-Benz Mobility for a whopping $197 million in cash.
This strategic acquisition marks Lyft’s grand entrance into the European market, a significant expansion from its current operations limited to the U.S. and Canada since its inception in 2012. In contrast, its main competitor Uber has a global reach.
FREENOW operates in nine countries and over 150 cities across Europe, including nations like Germany, France, Spain, and the United Kingdom. The acquisition deal is expected to be finalized in the second half of 2025.
The merger with FREENOW is projected to double Lyft’s total addressable market to over 300 billion personal vehicle trips annually and boost its annualized gross bookings by approximately $1.14 billion.
Lyft’s CEO, David Risher, emphasized the company’s commitment to becoming the premier mobility platform globally, with Europe being a crucial step in that journey. He praised FREENOW as the ideal partner, aligning with Lyft’s values of customer service and connectivity.
Despite the acquisition, BMW and Mercedes-Benz Mobility affirmed their focus on their core operations, along with advancements in electrification, AI, and decarbonization.
Lyft assured that there will be no immediate changes to FREENOW’s user experience, with plans to introduce new benefits for both drivers and riders in the future. Integration efforts between the two companies are underway to allow seamless app usage for travelers in North America and Europe alike.
