Lyft has announced an agreement to acquire FREENOW, the German multi-mobility and ride-hailing app owned by BMW and Mercedes-Benz Mobility, for approximately $197 million in cash. The deal represents Lyft’s first strategic entry into the European market, where previously the company had only operated within the United States and Canada since its inception in 2012. This expansion will position Lyft as a more direct competitor globally to rival Uber, which already has extensive operations internationally.
FREENOW currently provides mobility services in nine European countries, operating in over 150 cities across Austria, France, Germany, Greece, Ireland, Italy, Poland, Spain, and the United Kingdom. Lyft expects the acquisition to finalize during the second half of 2025.
The acquisition aligns strategically with recent positive indicators at FREENOW, which has reported a year-over-year growth rate of 13% in its taxi business and recently achieved break-even status. Lyft projects that integrating FREENOW into its portfolio will nearly double its total addressable market, raising it to more than 300 billion individual vehicle trips annually. This acquisition is anticipated to contribute an additional $1.14 billion in annualized gross bookings to Lyft’s operation.
David Risher, CEO of Lyft, emphasized the company’s global ambitions, describing the acquisition as a significant advancement in Lyft’s ongoing expansion and evolution as a customer-centric mobility platform. Risher highlighted the alignment of company values and local-market expertise between Lyft and FREENOW, underscoring the benefits of combining resources and experience.
BMW and Mercedes-Benz Mobility, in a joint statement, announced that the sale of FREENOW supports their strategic focus on core automotive operations, alongside continued efforts in electrification, artificial intelligence and decarbonization initiatives.
Lyft stated there will be no immediate disruptions or major changes for FREENOW users. Over time, however, both Lyft and FREENOW customers will experience expanded benefits, notably greater convenience through seamless integration, enabling users to utilize either app while traveling in Europe and North America alike.
