Lyft makes strategic move into Europe with Freenow acquisition

US-based rideshare platform Lyft will acquire German taxi app Freenow for €175 million in a deal expected to close by late 2025.

Lyft has officially confirmed that it has signed a definitive agreement to acquire Freenow for approximately €175 million (about $190 million), purchasing the company from German automakers BMW and Mercedes-Benz. The deal, subject to regulatory approval, is anticipated to be finalized in the second half of 2025.

According to a customer communication sent by Freenow, users will not experience immediate changes to the platform. The company assured passengers that the app, its interface, and the team behind it will remain the same for the time being. However, it added that integration with Lyft will improve overall service quality, citing benefits such as more efficient ride matching, broader operational coverage, and enhanced features tailored for both drivers and passengers.

Lyft's European entry begins with Freenow

This acquisition represents Lyft’s most significant expansion outside of North America to date. The company, which ranks second in the US market behind Uber, offers a variety of transportation options including rideshare services, scooters, and bicycles. In 2024, Lyft reported having 23.7 million active riders, and annual revenue figures of approximately $4.3 billion.

With this acquisition, Lyft expects to grow its annual gross bookings by around €1 billion, strengthening its competitive position not only in the United States but also in the European mobility market. Entering Europe has been described by Lyft CEO David Risher as “an important step in our growth journey,” and he described Freenow as the “perfect partner.”

Implications for competition and market share

By acquiring a company that already operates in major European cities such as Berlin, Paris, and Madrid, Lyft bypasses the need to build a user base and regulatory framework from the ground up. Freenow brings with it an existing network of users, partner drivers, and local operations experience, which could give Lyft a practical edge in adjusting to regional demands.

There has been no official statement on whether Freenow will continue operating under its own brand or be merged into the Lyft platform in the long term. However, both companies have emphasized continuity and stability for users during the transition phase.

For Lyft, the move signals a clear intention to broaden its global footprint and diversify its operations beyond the US. For Freenow, it presents an opportunity to leverage Lyft’s technology and infrastructure while continuing to serve its core user base across Europe.