Lyft to enter European market with $200 million FreeNow acquisition

Lyft, a U.S. company, announced on Wednesday that it is acquiring FreeNow, a mobility platform, from German automotive giants BMW and Mercedes-Benz for 175 million euros ($198.40 million) to expand its presence in the European ride-hailing market. Facing competition from Uber in North America, Lyft is looking to grow its business through this acquisition. By purchasing FreeNow, Lyft will gain access to major European cities like London, Frankfurt, Paris, and Milan, where the German firm offers various services including traditional taxi, e-scooter rentals, and car-sharing options. According to Lyft CEO David Risher, this move into the European market comes at a favorable time and the company is well-positioned financially for expansion. FreeNow, which operates in over 150 cities across nine European countries, achieved break-even status in September and saw a 13% year-on-year revenue increase in 2024. By acquiring FreeNow, Lyft will significantly increase its potential market to more than 300 billion personal vehicle trips per year. However, Lyft will face competition from Uber and Bolt Technology in Europe, as both companies have a strong presence in the market. European regulations are also driving ride-hailing companies to improve driver benefits and ensure fair compensation through measures like minimum wage guarantees and holiday pay.