Lyft announced that it is acquiring European taxi app FREENOW for 175 million euros (approximately $199 million). This is Lyft’s first deal in Europe and is expected to close in the second half of 2025. After the merger, the two companies will serve more than 50 million users per year.
Founded in 2009, FREENOW provides taxi services in more than 150 cities in nine European countries, including the UK, Germany and France. The app has been owned by German companies BMW and Mercedes-Benz since 2019. In addition to traditional taxis, FREENOW offers electric scooters, mopeds and bicycles.
The acquisition will allow Lyft to expand its capabilities in the European market, which is very competitive with players such as Uber, Bolt and Gett. Lyft CEO David Risher explained that the company decided to enter the European market after improving its service in North America. Noting that since his arrival at the company, Lyft has been able to improve its situation: it picks up passengers faster, has reduced the percentage of cancellations by drivers, and driver income has increased significantly.
Uber, Lyft's main competitor, has been operating in the European market since 2012 but has faced a number of regulatory challenges, particularly in London, where the company has twice tried to revoke its license over safety concerns.