Lyft, the US-based ride-hailing company, announced its purchase of FreeNow, a European ride-hailing platform. The agreement will cost 175 million euros, or about $199 million. FreeNow started out as myTaxi in 2009 and has headquarters in Hamburg, Germany. It has since quickly scaled to over 150 cities in nine countries (including Ireland, the UK, Germany, and France), establishing it as one of the largest competitors in the European ride-hailing market.
The acquisition will help Lyft increase its footprint in Europe and expand its services beyond passenger rides and into food delivery. With FreeNow, premium taxi and ridesharing options are now accompanied by e-scooters, e-mopeds, and e-bikes. FreeNow Whatever your transportation needs may be, FreeNow’s diverse portfolio has you covered. This incredible variety of mobile technology truly raises the user experience bar for its customers.
Since 2019, FreeNow has been a joint venture between German automotive titans BMW and Mercedes-Benz. This collaboration has enabled FreeNow to become a fierce competitor against other large players in the European market such as Uber, Bolt, and Gett. With the merger of FreeNow and Lyft, the combined entity is projected to serve over 50 million annual users worldwide, significantly increasing Lyft’s market share in Europe.
The deal is expected to close in the second half of 2025. That timeline provides both companies with ample time to deftly implement their joined-at-the-hip operations. Lyft CEO David Risher emphasized the strategic importance of this move, stating, “When I started, unfortunately, we were losing share, we were losing money. We weren’t doing so great for riders or drivers. Now is the time.”
Seen in this context, this acquisition is a game changer for Lyft. Most importantly, it significantly enhances their competitiveness in the global ride-hailing market. FreeNow’s established infrastructure and significant user base position it as a valuable asset for Lyft’s growth strategy.
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