Lyft has announced the acquisition of the German mobility platform FREENOW for €175 million, marking the US company’s most significant expansion into the European market to date.
The deal, confirmed on 16 April 2025, will see FREENOW purchased from its current owners, BMW and Mercedes Benz.
This development ends FREENOW’s status as a European owned platform and follows closely after Bolt’s acquisition of the Danish ride hailing service Viggo in March.
“We are on an ambitious path to build the best, most customer obsessed mobility platform in the world, and entering Europe is an important step in our growth journey,”
said David Risher, CEO of Lyft.
“We found the perfect partner in FREENOW and can learn a lot from the team. FREENOW’s local first approach mirrors Lyft’s values and embodies our purpose to serve and connect.”
FREENOW operates in more than 150 cities across nine European countries, including the United Kingdom, France, Germany, Italy and Spain.
The platform offers a variety of services, including traditional taxi bookings, e scooter rentals and car sharing.
In 2024, the company reached break even status and recorded a 13 percent year on year increase in revenue, primarily driven by its taxi services.
The acquisition is expected to nearly double Lyft’s addressable market, expanding from around 161 billion to over 300 billion personal vehicle trips annually.
Lyft is aiming to enter the European taxi sector, which remains partly offline, with almost half of taxi rides still booked through non digital channels.
“Almost half of the taxi industry in Europe is still offline. So it is also where a lot of growth potential comes from,”
said FREENOW CEO, Thomas Zimmermann.
FREENOW’s operations include an innovation centre in Barcelona, which was the company’s first such facility outside Germany, reflecting the city’s role in its European strategy.
Following the acquisition, Lyft intends to retain the FREENOW brand and its existing services across Europe. Users will see improved ride allocation times and new features, with the option to book services via either the Lyft or FREENOW apps, regardless of their location in Europe or the US.
The transaction is expected to close in the second half of 2025, subject to regulatory approval.
“Joining forces with Lyft is a powerful step forward for FREENOW and marks the beginning of an ambitious new phase, one where we strengthen our role as a leading force in European mobility,”
Zimmermann said.
Featured image credit: FREENOW
