Lyft Announces Acquisition of European Taxi App Free Now in $199 Million Deal

U.S. ride-hailing company Lyft has revealed its plans to purchase the European taxi app Free Now in a deal worth 175 million euros ($199 million). This acquisition marks Lyft's first venture into the European market and is anticipated to be finalized in the latter half of 2025. Upon completion, the combined entity is projected to cater to over 50 million users annually.

 Free Now, originally established as myTaxi in 2009, operates as a ride-hailing platform with its headquarters situated in Hamburg, Germany. Since 2019, the company has been jointly owned by German automotive giants BMW and Mercedes-Benz. The app's services are accessible in more than 150 cities across nine countries, including the U.K., Ireland, France, and Germany. In addition to traditional taxi and ride-hailing services, Free Now also provides various mobility options such as e-scooters, e-mopeds, and e-bikes. Notably, the startup has demonstrated positive earnings based on its Earnings Before Interest, Debt, and Amortization, recording gross bookings exceeding 1 billion euros in 2024.

Through the acquisition of Free Now, Lyft aims to expand its presence in the fiercely competitive European ride-hailing market, directly competing with industry players like Uber, Bolt from Estonia, and Gett from Israel. In contrast, Lyft's domestic competitor Uber has enjoyed a substantial head start in the U.K. market since its launch in 2012, albeit encountering regulatory challenges, including two attempted bans by London's transport regulators due to safety concerns. However, Uber ultimately secured a renewed license to operate in the city in 2022.

Source: CNBC