Lyft is making its boldest international move yet by acquiring European taxi-hailing platform FreeNow from German automotive giants BMW and Mercedes-Benz for approximately €175 million ($197.4 million) in cash. The deal marks Lyft’s first expansion of its ride-hailing business beyond North America and positions the San Francisco-based company to compete more directly with Uber on a global scale. Until now, Lyft’s international presence has been limited to bike and scooter programs, including Santander Cycles in London. With FreeNow onboard, Lyft enters the ride-hailing space in more than 150 European cities spanning nine countries—including key markets like London, Berlin, Barcelona, Athens, and Hamburg.

FreeNow, owned by German automakers BMW and Mercedes-Benz, originated from a €1 billion mobility joint venture launched in 2019 under the former Daimler and BMW partnership. That venture included other services like ShareNow (car-sharing), ChargeNow (EV charging), and ParkNow (parking), all aimed at building a robust European counterweight to Uber. However, the OEMs began dismantling the venture in 2022, selling ShareNow to Stellantis as part of a strategic realignment. In 2020, a rumor circulated that  Uber was apparently interested in buying FreeNow at a reported figure of $1.2 billion.

FreeNow’s business model distinguishes it from competitors. Rather than disrupting local taxi services, it aggregates them alongside private-hire and premium vehicles. According to Lyft, taxis made up around 90% of FreeNow’s gross bookings in 2024, and this mix will remain central to its European strategy. FreeNow achieved break-even status last year, boosted by a 13% increase in revenue and its emphasis on collaboration with licensed taxi operators.

Despite the acquisition, FreeNow will retain its brand identity for now. However, Lyft hinted that a rebrand may be considered in the future as the companies work toward deeper integration. FreeNow’s cooperation-based model—embracing regulation and traditional taxi fleets—enabled it to avoid many of the legal hurdles Uber has encountered in cities like London and Paris.

[Source: Reuters]