Lyft is making a major move into Europe by acquiring the European taxi-hailing platform FreeNow for approximately €175 million ($197.4 million) in cash. The deal, which marks Lyft’s first expansion beyond North America, positions the San Francisco-based company to challenge Uber on a global scale. Previously, Lyft’s international footprint was limited to bike and scooter services, such as Santander Cycles in London. With FreeNow, Lyft will now operate in over 150 cities across nine European countries, including major markets like London, Berlin, Barcelona, Athens, and Hamburg.
FreeNow, which was owned by BMW and Mercedes-Benz, was created in 2019 as part of a €1 billion mobility joint venture between the two German automakers. The partnership also included other services such as ShareNow (car-sharing), ChargeNow (EV charging), and ParkNow (parking), all aimed at creating a European alternative to Uber. However, the automakers began restructuring the venture in 2022, selling ShareNow to Stellantis. In 2020, there were rumors that Uber might acquire FreeNow for around $1.2 billion.
FreeNow stands out by working with local taxi services, rather than replacing them. It also integrates private-hire and premium vehicles. Lyft has stated that in 2024, taxis accounted for about 90% of FreeNow’s bookings, and this model will remain key to its strategy in Europe. Last year, FreeNow reached break-even status, thanks to a 13% revenue increase and strong partnerships with licensed taxi operators.
For now, FreeNow will keep its brand identity, although Lyft has suggested that a rebranding might be considered as the companies integrate more closely. FreeNow’s approach of working with existing taxi fleets has helped it avoid many of the regulatory challenges that Uber has faced in cities like London and Paris.
