Lyft enters European taxi market with €175m FREENOW acquisition
- Perry Richardson
- Apr 16
- 2 min read
Updated: Apr 17
Lyft has announced a €175 million deal to acquire European taxi platform FREENOW from BMW Group and Mercedes-Benz Mobility. The move marks the US-based firm’s most significant step outside North America and brings Lyft into nine new European countries.
The acquisition will see FREENOW continue to operate as it does now, with its leadership team and staff retained. The platform operates across over 150 cities including London, Dublin, Berlin, and Madrid. Its core offering is built around taxis, which made up around 90% of its gross bookings last year.
Once completed, the deal will nearly double Lyft’s global addressable market, reaching over 300 billion personal vehicle trips a year. It’s also expected to add around €1 billion in annual gross bookings. Subject to closing conditions, the deal is set to finalise in the second half of 2025.
FREENOW brings strong regulatory relationships and European market experience. Lyft, on the other hand, adds digital booking and pricing tools already in place across the US and Canada. Together, the businesses will serve more than 50 million riders annually.
Both companies plan to improve driver transparency and efficiency, offer faster passenger matching, and support cross-platform use between continents. Over time, drivers can expect clearer earnings information and incentives. Riders could benefit from smoother booking and more consistent pricing.
The deal supports Lyft’s growth strategy and continues its record-breaking performance in 2024, which included profit milestones and strong cash flow.
Thomas Zimmermann, CEO of FREENOW, said: “Joining forces with Lyft is a powerful step forward for FREENOW and marks the beginning of an ambitious new phase. This partnership enables us to scale what we do best, deepen our commitment to our partners and customers, and strengthen our role as a driving force in European mobility.”
David Risher, CEO of Lyft, said: “We’re 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.
“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.”
