Lyft has announced a landmark acquisition of FreeNow, the leading European multi-mobility platform, in a deal valued at approximately $197 million (€175 million). This transaction, expected to close in the second half of 2025 pending regulatory approval, signals Lyft’s most significant international expansion to date and positions the US ride-hailing company as a direct competitor to Uber and other established players in the European market.
FreeNow’s Strong European Footprint
FreeNow, headquartered in Hamburg, Germany, operates in more than 150 cities across nine European countries, including major urban centers such as London, Paris, Berlin, Milan, Madrid, and Dublin. Originally launched as myTaxi in 2009, FreeNow has evolved into a comprehensive mobility platform, offering a range of services from traditional taxi bookings to e-scooter rentals, car-sharing, and e-bike options. According to company data, around 90% of FreeNow’s gross bookings are still generated by its core taxi business, underlining the continued importance of licensed taxis in Europe’s urban mobility landscape.
Expanding Lyft’s Addressable Market
The acquisition comes at a time when Lyft is seeking new avenues for growth beyond its core North American market. With this deal, Lyft’s total addressable market nearly doubles, expanding from approximately 161 billion to over 300 billion personal vehicle trips annually. This strategic move gives Lyft immediate access to a highly fragmented European ride-hailing sector, where digital penetration remains incomplete and nearly half of the taxi industry still operates offline. FreeNow’s established relationships with local taxi operators and regulators are expected to provide Lyft with a crucial competitive advantage as it enters a market characterized by complex regulatory environments and strong local incumbents.
FreeNow’s Performance and Local Strategy
FreeNow’s recent performance has been robust, with the company reporting break-even status in 2024 and a 13% year-on-year revenue increase, mainly driven by its taxi segment. The company currently employs around 700 people and has built a reputation for its “local-first” approach, adapting its platform to the specific needs and regulations of each city it serves. This operational philosophy aligns closely with Lyft’s own emphasis on customer-centric service and local market adaptation.
Leadership Perspectives and Integration Plans
Lyft CEO David Risher described FreeNow as the “perfect partner” for Lyft’s European ambitions, highlighting the complementary nature of the two companies’ business models and their shared commitment to serving both riders and drivers. FreeNow CEO Thomas Zimmermann emphasized the potential for further digitalization of the European taxi sector, noting that the partnership will accelerate efforts to bring more of the industry online and enhance service quality for users.
Under the terms of the deal, FreeNow will continue to operate under its existing brand and management team, with no immediate changes to its app or customer experience. Over time, Lyft plans to introduce new features and benefits for FreeNow drivers and riders, including improved ride-matching algorithms, more transparent earnings information, faster matching, and expanded operational zones. The integration will also enable cross-platform functionality, allowing users to access mobility services via either the Lyft or FreeNow app when traveling between North America and Europe.
Intensifying Competition in European Mobility
The competitive landscape in Europe remains challenging, with Uber, Bolt, and Gett among the major players vying for market share. Uber, which has operated in Europe since 2012, has faced regulatory obstacles in several markets, most notably in London. Lyft’s entry, facilitated by FreeNow’s established presence and regulatory know-how, is expected to intensify competition and accelerate innovation in the sector.
The acquisition underscores the growing importance of international expansion and multi-mobility platforms in the global ride-hailing industry. As urban mobility continues to evolve, the combination of Lyft and FreeNow is poised to reshape the competitive dynamics of the European market, offering riders and drivers a broader range of options and a more integrated digital experience.
