San Francisco-based ride-hailing platform Lyft announced this week that it has agreed to acquire German multi-mobility app FREENOW — which includes a taxi booking service — from BMW Group and Mercedes-Benz Mobility for approximately €175 million.
FREENOW will continue operating as it does today, driving growth across 9 countries and over 150 cities across Ireland, the United Kingdom, Germany, Greece, Spain, Italy, Poland, France, and Austria.
This marks Lyft’s most significant expansion outside North America, nearly doubling Lyft’s total addressable market to more than 300 billion personal vehicle trips per year, increasing annualised Gross Bookings by approximately €1 billion, diversifying revenue streams, and supporting Lyft’s multi-year targets.
“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.
In Europe, the taxi aggregation business is strong and growing. Approximately 50 per cent of taxi bookings in Europe still happen offline, but customers are hungry for more online bookings.
FREENOW is primed to capitalize on that opportunity. FREENOW is the leading taxi platform in several major 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 per cent of FREENOW’s Gross Bookings in 2024 and will continue to be the backbone of FREENOW’s business.
“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 FREENOW CEO Thomas 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.”
FREENOW and Lyft’s combined business models together will serve over 50 million combined annual riders.
While there will be no immediate changes to FREENOW’s customer experience, new benefits will be made available to FREENOW drivers and riders over time.
Concerns raised over European mobility falling into US hands
Industry sources told me they were surprised to see Mercedes-Benz selling Freenow to Lyft, considering that they also own meaningful stakes in Bolt and Blacklane.
One raised concerns that “Mercedes-Benz and BMW’s move shifts a major European mobility asset into US ownership, which is a questionable move in the current political climate.”
Further, a Bolt spokesperson told me:
"This acquisition leaves Bolt as one of the last major European alternatives to American platforms."
Bolt operates in over 30 countries across Europe.
"In doing so, it relies on its deep understanding of local particularities, the needs of cities, and the expectations of its drivers and customers.
Over more than a decade of its operations, Bolt has continually out-competed better-funded competitors. This means that the company has been built on the culture of frugality and efficiency, which has enabled it to become a major global ride-hailing player and the leader in most markets where it operates."
In March, Bolt acquired Viggo, Denmark’s top-performing taxi company, in a strategic move to expand its presence in regulated European markets.
The acquisition of FREENOW by Lyft is expected to close in the second half of 2025, subject to customary closing conditions.
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