Lyft, a San Francisco-based ride-hailing giant, is making its long-anticipated European debut with a strategic acquisition of FREENOW, a German multi-mobility app with a focus on ride-hailing in a deal worth €175 million. This move marks a major turning point for Lyft, which until now operated exclusively in the US and Canada.
Lyft told us, “The transaction is expected to close in the second half of 2025, subject to customary closing conditions. Over time, the companies will focus on integration so riders can seamlessly use either app across the Atlantic, whether they’re in North America or Europe.”
With this acquisition, Lyft is not just entering a new market, but setting its sights on becoming a global mobility player and directly challenging Uber in one of the most competitive ride-hailing regions in the world. The company didn’t comment on the potential Bolt and Uber acquisitions.
Lyft noted: “We are committed to entering Europe responsibly, preserving FREENOW’s local-first model and adopting the existing regulatory framework. Lyft has a strong track record of transparency, collaboration, compliance, and ethical business conduct. We are fostering a healthy, competitive landscape that includes taxis, PHVs, public transport and new mobility forms. While the acquisition strengthens our position in an attractive and growing market, any potential expansion will be guided by strategic alignment and market conditions.”
Expansion to nine new nations
For Lyft, this acquisition is more than a territorial expansion, but a paradigm shift. As per the CEO David Risher, after honing operations in North America, it is time to scale globally.
Founded in 2009 by German entrepreneurs Niclaus Mewes and Sven Külper as myTaxi and rebranded in 2019, FREENOW, led by CEO Thomas Zimmermann, is jointly owned by automotive giants BMW and Mercedes-Benz. Headquartered in Hamburg, FREENOW operates in over 150 cities across nine countries, including the U.K., Germany, France, Ireland, and Italy.
With the acquisition expected to close in the second half of 2025, Lyft is carefully preparing for its global rollout. It’s a clear signal to investors and competitors alike that the company is no longer content being a domestic player.
Unlike pure-play ride-hailing apps, FREENOW offers a wide array of mobility options, from taxis and private rides to e-scooters, e-mopeds, and e-bikes. Its multimodal approach has helped it capture a loyal user base of over 50 million annual riders, while recently hitting break-even and surpassing €1 billion in gross bookings for 2024.
Doubling down on market opportunity
This acquisition gives Lyft a shot at doubling its total addressable market, which will now grow to over 300 billion personal vehicle trips annually. It also stands to boost gross bookings by $1.14 billion, significantly enhancing the company’s revenue potential.
FREENOW brings earnings-positive performance and a reputation for high-quality, often luxury, vehicle services, a competitive advantage in urban European hubs. The deal also gives Lyft a foothold in multimodal mobility, an area Uber has also been investing in heavily.
As competitors like Uber, Bolt, and Gett fight for European market share, Lyft is betting on a smarter, integrated approach to mobility.
What’s next for European riders?
For millions of riders across Europe, Lyft’s entry could mean more choices and better experiences. The company said there will be no immediate changes to FREENOW’s customer interface, but new benefits will be introduced over time.
Eventually, riders will be able to use either the Lyft or FREENOW app interchangeably, regardless of whether they’re in North America or Europe. This integration could simplify international travel and boost customer retention across continents.
Lyft also hinted that FREENOW drivers will gain access to new tools and incentives, aligning with the company’s goal to make driving more flexible and profitable. As Lyft aligns systems, its tech-driven pricing, safety features, and in-app upgrades may gradually roll out across FREENOW’s platform.
Our thoughts
In the long run, this acquisition could reshape mobility in Europe by introducing more competition, encouraging innovation in rider experience, and integrating AI-powered services at scale. Lyft’s move echoes a broader trend of consolidation and global expansion in the ride-hailing industry and Europe is just the beginning.
For BMW and Mercedes-Benz, this allows them to focus on core operations, AI, electrification, and decarbonisation, while Lyft takes over the reins of their shared venture.
As Lyft shifts into gear in Europe, the race for global ride-hailing dominance enters an entirely new phase.
