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Lyft Enters European Market with Purchase of Freenow from BMW, Mercedes

By  |  April 16, 2025

Lyft is taking its first major step beyond North America with the acquisition of European ride-hailing service Freenow for approximately €175 million ($197 million), a move that positions the U.S.-based company to compete more broadly on the global stage.

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    The deal, which involves the purchase of Freenow from current owners BMW Group and Mercedes-Benz Mobility, is expected to close in the second half of 2025, according to a statement issued by Lyft on Wednesday. Per Bloomberg, the transaction is structured as an all-cash deal and signals Lyft’s ambition to significantly broaden its footprint outside its traditional markets in the U.S. and Canada.

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    Freenow, headquartered in Germany, operates across nine European countries and serves more than 150 cities, including major hubs in the UK, France, Spain, and Italy. The acquisition will give Lyft immediate access to these established urban markets, offering a platform for rapid international growth.

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    While Lyft has remained focused on North American operations since its founding, the company has now opted for a strategic leap into a region where its main rival, Uber Technologies Inc., has long maintained a strong presence. According to Bloomberg, Uber currently operates in over 70 countries, underlining the scale of the competition Lyft now faces.

    Lyft stated that the Freenow acquisition will “nearly double” the company’s total addressable market by adding more than 300 billion personal vehicle trips annually. It also anticipates an increase in annualized gross bookings by around €1 billion ($1.14 billion), boosting revenue potential and supporting its broader financial targets.

    Source: Bloomberg