Uber’s main US rival Lyft expands in Europe through FreeNow acquisition

US-owned ride-hailing service Lyft has made a long-awaited entry into European taxi markets with the acquisition of FreeNow.

Lyft, which is Uber’s main rival in North America, has paid €175 million (£150m) to buy the European taxi app from the partner companies that set it up, BMW Group and Mercedes-Benz Mobility.

The deal gives Lyft access to nine European countries and more than 150 cities. Lyft currently only operates in the US and Canada. FreeNow partners with taxi and private hire operators in the UK, Ireland, Germany, Greece, Spain, Italy, Poland, France, and Austria. The transaction is expected to be finalised in the second half of 2025.

In a statement, Lyft said FreeNow would “continue operating as it does today, with its talented leadership team and employees in place Lyft found in FreeNow a partner to immediately fuel its growth strategy, unlock potential for partners, and level up the experience for drivers and riders alike”.

The deal nearly doubles the size of Lyf in terms of annual journeys to more than 300 billion personal vehicle trips per year. It increases annual gross bookings by approximately €1bn and diversifies revenue streams. 

“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,” said Lyft CEO David Risher. “We found the perfect partner in FreeNow and can learn a lot from the team.”

FreeNow brings market-leading European taxi expertise, fleet technology and strong relationships with regulators, unions and taxi fleet operators. 

“The business models are complementary and together will serve over 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.”

In Europe, the taxi aggregation business is growing. Approximately 50% of taxi bookings in Europe still happen offline, but customers are moving toward online bookings. FreeNow is 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 approximately 90% of FreeNow’s gross bookings in 2024 and will continue to be the backbone of its business.

“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,” said FreeNow CEO Thomas Zimmermann. “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.”

Over time, Lyft said new benefits would be made available to FreeNow drivers and customers. “For drivers in many markets, that may look like more transparency around their earnings such as when to expect incentives and real-time information on the best times to drive,” The companies will also focus on integration for riders to use either the Lyft or FreeNow app in North America and Europe.