Lyft Acquires FreeNow from BMW and Mercedes for €175M, Targeting 50M+ Riders in Europe

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Updated Apr 16, 2025, 01:47 PM

Lyft Inc. has agreed to acquire FreeNow, a Hamburg-based European taxi-hailing app owned by BMW and Mercedes-Benz, for approximately €175 million ($197 million). The deal marks Lyft's first expansion into the European market, allowing the company to operate in nine countries and over 150 cities across the continent. David Risher, CEO of Lyft, stated that entering Europe is a significant step in the company's growth journey. The acquisition is expected to close in the second half of 2025, pending regulatory approval. Lyft anticipates that the merger will nearly double its total addressable market to over 300 billion personal vehicle trips annually and increase its annual gross bookings by about €1 billion. The combined operations of Lyft and FreeNow are expected to serve more than 50 million riders annually. FreeNow will continue to operate independently under its current management and staff, focusing on growth in its existing markets. The platform, which emerged from a BMW and Mercedes joint venture, primarily serves taxi services, which account for about 90% of its gross bookings, and also offers other mobility options such as electric scooters and bikes.

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