Lyft announced Wednesday that it is acquiring mobility platform FreeNow from German automotive companies BMW and Mercedes-Benz for €175 million ($198.40 million), marking the U.S. ride-hailing company’s expansion into the European market.
The acquisition will increase Lyft’s potential market, granting access to major cities such as London, Frankfurt, Paris, and Milan. FreeNow operates in over 150 cities across nine European countries, offering services that range from traditional taxi rides to e-scooter rentals and car-sharing options.
Lyft CEO David Risher described the European entry as occurring at “a good price and, more importantly, a great time,” citing the company’s strong financial position. He emphasized the strategic benefits of the expansion.
FreeNow reported achieving break-even status in September, with a 13% increase in year-on-year revenue for 2024, driven largely by its focus on taxi operations. With this acquisition, Lyft projects its addressable market will grow from approximately 161 billion personal vehicle trips per year to more than 300 billion.