Lyft gets a toehold in Europe with FreeNow acquisition

Lyft said it is acquiring mobility level FreeNow, giving the ridehailing institution its archetypal large beingness successful Europe aft years of operating exclusively successful the US and Canada.

FreeNow aggregates taxis alongside backstage vehicles, including luxury rides. The acquisition of FreeNow astir doubles Lyft’s imaginable marketplace and volition adjutant the institution arsenic it seeks to vie with the ascendant subordinate successful ridehailing, Uber. While Lyft oversees respective bikeshare brands successful Europe, including Santander Cycles successful London, it has yet to grow its ridehailing cognition beyond North American borders.

“We’re connected an ambitious way to physique the best, astir customer-obsessed mobility level successful the world, and entering Europe is an important measurement successful our maturation journey,” said Lyft CEO David Risher successful a statement.

FreeNow operates successful implicit 150 European cities, including Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg, with luxury vehicles making up a important information of its fleet. Taxis accounted for astir 90 percent of the company’s gross bookings successful 2024, which Lyft says volition proceed to beryllium the “backbone” of its business. The institution said successful September it had achieved break-even status, connected the backmost of a 13 percent year-on-year summation successful 2024 gross and its absorption connected taxi operations, according to Reuters.

Lyft is buying FreeNow from its genitor companies, BMW and Mercedes-Benz for €175 cardinal ($198.40 million). The institution emerged from a $1 cardinal mobility woody betwixt BMW and Daimler backmost successful 2019 aimed astatine creating caller entities focused connected autonomous cars, ride-hailing, electrical scooters, car-sharing, and electrical car charging. In summation to FreeNow, determination was ReachNow for multimodal services; ChargeNow for EV charging; ParkNow for parking; and ShareNow for car-sharing. 

FreeNow volition support its ain branding, but the companies accidental that a aboriginal rebranding is possible.

“Over time, the companies volition absorption connected integration and immoderate changes volition beryllium gradual, respectful, and made successful consultation with due stakeholders,” Lyft spokesperson Stephanie Rice said successful an email.