US-based mobility services platform Lyft reports that it has signed a definitive agreement to acquire Freenow, a European player in the multimodal mobility app market with taxis at its core, from BMW Group and Mercedes-Benz Mobility, for a total value of around EUR 175 million or USD 197 million. Freenow will continue to operate as usual, maintaining its current positioning and the same employees, to drive growth in nine countries and over 150 cities including Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France and Austria. The transaction will be completed in the second half of 2025, subject to the fulfilment of conditions precedent.
Lyft has found in Freenow the ideal partner to accelerate its growth strategy, unlock potential for partners and improve the experience for taxi drivers and passengers. The deal marks Lyft’s most significant expansion outside North America, allowing the company to double its potential market to over 300 billion trips per year and increase gross annual bookings by approximately €1 billion, diversifying revenue sources and supporting the company’s multi-year goals.
“We are on an ambitious journey to develop the best global platform for our users. In this sense, our entry into Europe represents an important step in our growth,’ says David Risher, CEO of Lyft, in a note. We found the perfect partner in Freenow and know we can learn a lot from their team. Freenow’s approach, which prioritises the local market, fully reflects Lyft’s values and embodies our goal: to offer a service and to connect.”
Freenow brings deep experience in the European taxi industry, with advanced fleet management technologies and strong relationships with local regulators and market players. Lyft brings the best market experience and tailor-made functionality for users. The two business models are complementary and together will serve more than 50 million passengers per year, with the goal of delivering a better experience, raising service levels, strengthening fleet management capabilities and expanding global opportunities for current and future partners.
In Europe, the aggregate taxi market is strong and growing. About 50 per cent of taxi bookings still take place offline, but customers are increasingly moving towards digital bookings. Freenow is ready to seize this opportunity. The platform is the leading one for taxi services in several major European cities including Dublin, London, Athens, Berlin, Barcelona, Madrid and Hamburg. Taxis accounted for around 90 per cent of Freenow’s gross bookings in 2024 and will continue to be the mainstay of the company’s business.
“Joining forces with Lyft is an important step for Freenow and marks the beginning of a new and ambitious phase, in which we reinforce our role as a key player in European mobility,” says Thomas Zimmermann, CEO of Freenow. “Lyft’s historic customer orientation fits perfectly with our deep roots in the taxi industry and together we will push the boundaries, raising the expectations of taxi drivers and passengers across the continent. We work with the industry, without overwhelming it, remaining proud partners of the local communities. With this collaboration we join forces in learning from each other and implementing the best solutions. We sincerely thank our previous shareholders for the trust and support shown over the years.”
While there will be no immediate change in the customer experience, new benefits will soon be available to both taxi drivers and passengers. For taxi drivers, in many markets this could mean greater transparency on earnings, with real-time information on incentives and the best times to drive. For passengers, this could mean more uniform fares, faster contact with taxi drivers and new features and modes of transport. The two companies will also work on integration that will allow passengers to use both apps indiscriminately, both in North America and Europe.
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