Lyft moves into European market with $197M acquisition of FREENOW

Lyft is set to broaden its international footprint with a $197 million deal to acquire FREENOW, a major European mobility app known for its strong taxi service network. The agreement, confirmed on Tuesday, will see FREENOW continue to operate independently under its current leadership while expanding Lyft’s operations into nine European countries.

The acquisition, expected to finalize in the second half of 2025 pending regulatory approvals, signals Lyft’s most extensive move beyond North America. Once completed, the combined companies will operate across 11 countries, including the United States, Canada, Ireland, the United Kingdom, Germany, Greece, Spain, Italy, Poland, France, and Austria.

By integrating FREENOW’s existing taxi-first platform into its operations, Lyft plans to significantly increase its reach in Europe’s urban transportation market. The deal nearly doubles Lyft’s total addressable market and is projected to boost annual gross bookings by around €1 billion. It also brings Lyft into closer contact with local European transit regulators and taxi networks.

FREENOW, previously owned by BMW Group and Mercedes-Benz Mobility, currently operates in more than 150 cities. Its platform is heavily focused on the taxi industry, with luxury vehicle services making up a significant portion of its offerings. In 2024, taxis accounted for roughly 90% of FREENOW’s gross bookings.

While Lyft offers a tech-focused marketplace model and experience in rideshare logistics, FREENOW brings in-depth regional expertise and established ties with local taxi operators and authorities. Together, the companies aim to serve over 50 million annual riders across their combined networks.

Though the companies will maintain separate apps for now, integration plans are on the horizon. These include app interoperability for cross-continental travel and improved tools for drivers and riders, such as enhanced fare transparency, more efficient ride-matching, and additional service options.

The European taxi market still sees around half of its bookings occurring offline. Lyft and FREENOW aim to capitalize on growing demand for digital booking solutions. FREENOW already holds a leading position in cities like London, Berlin, Barcelona, and Athens, which positions it strategically to capture further market share as online demand increases.

In the near term, FREENOW will retain its brand identity and operational structure. Future plans include new benefits for drivers and passengers, expanded service features, and closer integration of operations between North America and Europe.

The acquisition aligns with Lyft’s strategy of targeting growth while maintaining a disciplined investment approach. It follows a strong financial performance in 2024, during which Lyft posted record gross bookings and cash flow.