Lyft hails a taxi to Europe: Set to acquire Germany’s FREENOW for €175M

Lyft, a US-based ride-hailing marketplace, announced an agreement to acquire Hamburg’s FREENOW, a mobility app with a taxi service, from BMW Group and Mercedes-Benz Mobility. 

The deal is valued at approximately €175M in cash. The acquisition is expected to close in the second half of 2025.

Aim of the acquisition

FREENOW is Europe’s multi-mobility app with taxi offering at its core, available in 9 European countries and over 150 cities. The company’s users can access various mobility services within a single app, including taxis, private hire vehicles (PHV) or ridesharing, carsharing, car rental, eScooters, eBikes, eMopeds and public transport.

The taxi aggregation market in Europe is growing, with 50 per cent of taxi bookings still made offline. However, there is an increasing shift towards digital booking. FREENOW aims to meet this demand, leading in key cities such as Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg. Taxis accounted for about 90 per cent of FREENOW’s Gross Bookings in 2024.

Thomas Zimmermann, CEO of FREENOW, says, “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.”

Zimmermann adds, “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 will continue its current operations, with its leadership and staff remaining in place. The platform is active in nine countries and over 150 cities, including Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France, and Austria.

Lyft’s partnership with FREENOW

Founded in 2012, Lyft aims to provide transportation and build connections through its services. Lyft, an early ridesharing platform in the US, now operates in both the US and Canada. Over time, millions of drivers have completed billions of rides. The company offers ridesharing, bikes, and scooters through one platform to make transportation accessible to users in different locations.

Lyft chose FREENOW as a partner to support its business expansion, offer more opportunities for its partners, and improve services for drivers and riders.

This move represents Lyft’s largest step outside North America. It will expand Lyft’s market reach to over 300 billion personal vehicle trips each year, raise yearly Gross Bookings by about €1B, introduce new income sources, and contribute to Lyft’s long-term goals.

David Risher, CEO of Lyft, says, “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.”

What’s next?

FREENOW’s customer experience will remain the same for now, but future updates will introduce added features for both drivers and riders. 

Drivers in various regions may receive clearer information about their earnings, including incentive timing and real-time driving insights. Riders may see changes such as steadier pricing, quicker trip matching, and additional options. 

Lyft and FREENOW also plan to integrate their apps, allowing users to access services across North America and Europe through either platform.