In a significant strategic move that reshapes the global ridesharing landscape, Lyft is making its first major expansion beyond North America by acquiring European mobility platform FreeNow. This acquisition marks a pivotal moment for the US-based ridehailing company as it seeks to challenge Uber's international dominance.
European Market Entry Strategy
Lyft has announced its acquisition of FreeNow from German automakers BMW and Mercedes-Benz for €175 million ($198.40 million). This purchase gives Lyft immediate access to over 150 European cities across nine countries, including major metropolitan centers such as London, Berlin, Barcelona, Madrid, and Hamburg. Until now, Lyft's operations had been limited to the United States and Canada, with only minimal European presence through bikeshare brands like London's Santander Cycles.
| Acquisition Details | Information |
|---|---|
| Acquisition Price | €175 million ($198.40 million) |
| Seller | BMW and Mercedes-Benz |
| FreeNow Market Presence | 150+ European cities across 9 countries |
| FreeNow Business Composition | 90% taxi bookings |
| Added Annual Gross Bookings | €1 billion |
| Lyft's 2024 Equivalent Sales | $4.3 billion |
Strategic Business Impact
The acquisition nearly doubles Lyft's potential market size, adding approximately €1 billion in annual gross bookings to Lyft's business. This represents a significant expansion compared to Lyft's 2024 equivalent sales figure of $4.3 billion. The move positions Lyft to more effectively compete against Uber, which has maintained a substantial lead in global market presence. FreeNow had recently achieved break-even status following a 13% year-on-year revenue increase in 2024, making it an attractive acquisition target.
Business Model Integration
FreeNow's business model differs somewhat from Lyft's traditional approach, with approximately 90% of its gross bookings coming from taxi services rather than private vehicles. Lyft has confirmed that taxis will continue to be the backbone of FreeNow's operations going forward. The platform also offers luxury rides and other mobility options including short-term car and scooter rentals, providing Lyft with a more diversified service portfolio.
Brand and Operational Continuity
For the immediate future, FreeNow will maintain its existing branding, though Lyft has indicated that a rebranding may occur later. Lyft spokesperson Stephanie Rice stated that any changes will be gradual, respectful, and made in consultation with appropriate stakeholders. This cautious approach acknowledges the different regulatory environments and market dynamics in Europe, where ridesharing services have historically faced greater scrutiny than in the United States.
Taxi Industry Relationships
FreeNow CEO Thomas Zimmermann emphasized the company's strong relationship with the traditional taxi industry, noting that they stand with the industry — not above it — and remain proud partners of the community. This positioning could help Lyft navigate the sometimes contentious relationship between ridesharing platforms and established taxi operators, which has been particularly challenging in European markets.
Strategic Vision
Lyft CEO David Risher framed the acquisition as part of a broader strategic vision, stating, 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. The acquisition represents Lyft's most significant international expansion to date and signals the company's intention to transform from a regional player into a truly global mobility platform.