Ride-hailing company Lyft announced Wednesday its plans to acquire European mobility platform Free Now for €175 million ($199 million), marking the company's first expansion into the European market.
The deal, expected to close in the second half of 2025, will combine Lyft's North American operations with Free Now's presence across 150 cities in nine European countries, including the UK, Germany, Ireland, and France. The merged entity will serve over 50 million annual users.
Free Now, formerly known as myTaxi, has been jointly owned by BMW and Mercedes-Benz since 2019. Beyond traditional ride-hailing services, the Hamburg-based company offers various mobility options including e-scooters, e-mopeds, and e-bikes. The company reported gross bookings exceeding €1 billion in 2024 and maintains positive earnings before interest, debt, and amortization.
Lyft CEO David Risher explained the timing of the European expansion, citing improved service metrics in North America and successful growth in Canada. "When I started two years ago, we were losing share and money. Now, we pick you up about a minute faster, driver cancellation is down to less than 5%, and our Canada operation has doubled this year," Risher told CNBC.
The acquisition positions Lyft to compete in Europe's dynamic ride-hailing market against established players like Uber, Estonia's Bolt, and Israel's Gett. This move comes years after Uber's 2012 entry into the UK market, where the competitor faced regulatory challenges, including two attempted bans in London over safety concerns before securing a new operating license in 2022.
The strategic purchase represents a major step in Lyft's international expansion strategy and marks a new chapter in the evolving European mobility landscape.