Lyft Acquires FreeNow for European Market Expansion

Lyft has agreed to acquire European taxi app FreeNow from BMW and Mercedes-Benz for approximately €175 million ($197 million), with the deal expected to close in the second half of 2025. FreeNow will continue to operate across 150 cities in nine European countries, while Lyft plans future integration for seamless service between North America and Europe. The acquisition nearly doubles Lyft's total addressable market to over 300 billion personal vehicle trips annually and is projected to add about $1.14 billion in annualized gross bookings. Both companies stated that taxis will remain central to FreeNow's business, aiming to enhance customer and driver options. BMW and Mercedes-Benz are selling FreeNow to focus on electrification and digitalization in their core automotive businesses. Lyft’s CEO described the deal as a key move to compete globally, particularly with rivals like Uber.