How might the Lyft and FREENOW acquisition impact the taxi industry?
- Perry Richardson
- May 31
- 2 min read
Updated: Jun 1
FREENOW currently runs across more than 150 cities, including major UK hubs such as London, Manchester and Birmingham.
Around 90% of its bookings come from licensed taxis, a focus the company says will continue post-acquisition. With FREENOW retaining its leadership team and branding, UK taxi drivers are unlikely to see any major operational changes until well after the deal is finalised in the second half of 2025.
The move gives Lyft a direct route into nine European countries. It nearly doubles its global reach, adding around €1 billion in annual gross bookings and opening access to over 300 billion personal vehicle trips per year.
For drivers, the positives include the potential for more ride demand from a larger user base, including international passengers already familiar with Lyft’s platform. There is also the promise of technology improvements that have been used in North America. These include clearer earnings data, better incentive structures and more precise information on the best times to drive.
Lyft and FREENOW have also both stated that pricing transparency will be a focus. This could help drivers understand fare structures more clearly and potentially reduce passenger disputes over costs.
However, the long-term impact remains uncertain. Drivers face questions around whether commission fees could rise in future, or if the platform may gradually shift focus towards private hire vehicles. For now, FREENOW’s commitment to a taxi-first model remains, but any change in strategic direction could affect drivers working in regulated taxi sectors.
Union relationships and regulatory ties built by FREENOW are expected to remain in place. Lyft has said it will look to maintain and strengthen these as it steps further into the UK and European markets.
As with many acquisitions, the future depends on how both firms integrate operations and evolve their strategy. For taxi drivers currently working with FREENOW, the next 12–24 months will be key to understanding what this change truly means on the ground.
