Lyft gets a toehold in Europe with FreeNow acquisition

Lyft said it is acquiring mobility platform FreeNow, giving the ridehailing company its first major presence in Europe after years of operating exclusively in the US and Canada.

FreeNow aggregates taxis alongside private vehicles, including luxury rides. The acquisition of FreeNow nearly doubles Lyft’s potential market and will aide the company as it seeks to compete with the dominant player in ridehailing, Uber. While Lyft oversees several bikeshare brands in Europe, including Santander Cycles in London, it has yet to expand its ridehailing operation beyond North American borders.

“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 Lyft CEO David Risher in a statement.

FreeNow operates in over 150 European cities, including Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg, with luxury vehicles making up a significant portion of its fleet. Taxis accounted for approximately 90 percent of the company’s gross bookings in 2024, which Lyft says will continue to be the “backbone” of its business. The company said in September it had achieved break-even status, on the back of a 13 percent year-on-year increase in 2024 revenue and its focus on taxi operations, according to Reuters.

Lyft is buying FreeNow from its parent companies, BMW and Mercedes-Benz for €175 million ($198.40 million). The company emerged from a $1 billion mobility deal between BMW and Daimler back in 2019 aimed at creating new entities focused on autonomous cars, ride-hailing, electric scooters, car-sharing, and electric car charging. In addition to FreeNow, there was ReachNow for multimodal services; ChargeNow for EV charging; ParkNow for parking; and ShareNow for car-sharing.

FreeNow will keep its own branding, but the companies say that a future rebranding is possible.

“Over time, the companies will focus on integration and any changes will be gradual, respectful, and made in consultation with appropriate stakeholders,” Lyft spokesperson Stephanie Rice said in an email.