Ride hailing company Lyft announced it has entered into a definitive agreement to acquire FREENOW, a leading European multi-mobility app with a taxi offering at its core, from BMW Group and Mercedes-Benz Mobility for about €175 million or $197 million in cash.
FREENOW will continue running as it does today, with its talented leadership team and employees in place to drive growth across 9 countries and over 150 cities across Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France, and Austria. The deal is expected to close in the second half of 2025, subject to customary closing conditions.
Why Lyft is buying FREENOW: Lyft found in FREENOW a partner to drive its growth strategy, unlock potential for partners, and level up the experience for drivers and riders alike. And this marks Lyft’s most significant expansion outside North America, nearly doubling Lyft’s total addressable market to more than 300 billion personal vehicle trips per year, increasing annualized Gross Bookings by about €1 billion, diversifying revenue streams, and supporting Lyft’s multi-year targets.
FREENOW brings market-leading European taxi expertise, fleet technology and strong relationships with regulators, unions, and taxi fleet operators in every market. The business models are complementary and together will serve 50+ million combined annual riders, with plans to deliver a better product experience, improve service levels, strengthen fleet management capabilities, and bring greater global opportunities to existing and potential partners.
About 50% of European taxi bookings still happen offline, but customers are hungry for more online bookings. And FREENOW is primed to capitalize on that opportunity. FREENOW is also the leading taxi platform in several major European cities, including Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg, with luxury vehicles making up a significant portion of its fleet. Taxis accounted for about 90% of FREENOW’s Gross Bookings in 2024 and will continue to be the backbone of FREENOW’s business.
Advisors: Guggenheim Securities is acting as financial advisor to Lyft, and Baker McKenzie is acting as its legal advisor. And Lazard is acting as financial advisor to BMW Group and Mercedes-Benz Mobility, and DLA Piper is acting as their legal advisor.
KEY QUOTES:
“We’re on an ambitious path to build the best, most customer-obsessed mobility platform in the world, and entering Europe is an important step in our growth journey. We found the perfect partner in FREENOW and can learn a lot from the team. FREENOW’s local-first approach mirrors Lyft’s values and embodies our purpose — to serve and connect.”
– David Risher, CEO of Lyft
“Joining forces with Lyft is a powerful step forward for FREENOW and marks the beginning of an ambitious new phase—one where we strengthen our role as a leading force in European mobility. Lyft’s strong, customer-first track record aligns perfectly with our deep roots in the taxi industry, and together we will push boundaries and raise expectations for fleet owners, taxi drivers, and riders across the continent. We stand with the industry—not above it—and remain proud partners of the community. This collaboration is about combining our strengths, learning from each other, and scaling what works best. We sincerely thank our former shareholders for their trust and enduring partnership throughout the years.”
– FREENOW CEO Thomas Zimmermann
