Lyft has announced its acquisition of German mobility platform FREENOW for €175 million, marking the U.S. company’s most significant expansion into the European market to date. The deal, confirmed on 16 April 2025, involves purchasing FreeNow from its current owners, BMW and Mercedes-Benz.
This marks the end of FreeNow’s status as a European-owned platform and comes shortly after Bolt acquired the Danish ride-hailing service Viggo in March.
“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,” said David Risher, CEO of Lyft. “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.”
FreeNow operates in over 150 cities across nine European countries, including major hubs like the U.K., France, Germany, Italy, and Spain. The company offers a range of services, from traditional taxi bookings to e-scooter rentals and car-sharing options. In 2024, FreeNow achieved break-even status, with a 13% year-on-year revenue increase, primarily driven by its taxi operations.
The acquisition is expected to nearly double Lyft’s addressable market, expanding from approximately 161 billion to over 300 billion personal vehicle trips annually.
Lyft aims to tap into the largely offline European taxi industry, where nearly half of taxi rides are still booked without digital platforms.
“Almost half of the taxi industry in Europe is still offline. So it’s also where a lot of growth potential comes from,” detailed FREENOW CEO Thomas Zimmermann.
In Barcelona, FreeNow established its first innovation centre outside Germany, highlighting the city’s strategic importance in the company’s European operations.
Lyft plans to maintain the FreeNow brand and its existing services across Europe. Users can expect improved ride allocation speeds and new functionalities, with the ability to book services through either the Lyft or FreeNow apps, regardless of whether they are in Europe or the United States.
The acquisition is anticipated to close in the second half of 2025, pending regulatory approvals.
“Joining forces with Lyft is a powerful step forward for FREENOW and marks the beginning of an ambitious new phase—one where we strengthen our role as a leading force in European mobility,” said Zimmermann.
“Lyft’s strong, customer-first track record aligns perfectly with our deep roots in the taxi industry, and together we will push boundaries and raise expectations for fleet owners, taxi drivers, and riders across the continent. We stand with the industry—not above it—and remain proud partners of the community. This collaboration is about combining our strengths, learning from each other, and scaling what works best. We sincerely thank our former shareholders for their trust and enduring partnership throughout the years,” he added.
Read the orginal article: https://www.eu-startups.com/2025/04/lyft-takes-the-wheel-as-freenow-exits-european-ownership-in-e175-million-deal/
