Lyft Clears Regulatory Hurdle to Acquire Europe’s Freenow for $197 Million
Lyft has secured the necessary regulatory approval to finalize its acquisition of Freenow, a European app-based taxi service. The deal, first announced in April, marks Lyft’s first expansion outside North America, with the company paying approximately $197 million to BMW and Mercedes-Benz for the acquisition.
Freenow will continue operating as usual, but Bloomberg reports that users will soon see prompts to download the Lyft app when traveling in the US or Canada. Similarly, Lyft riders in Europe will be directed to Freenow’s app when in one of the nine countries or 180 cities where the service operates. Eventually, the two platforms will integrate, allowing users to book rides seamlessly across both apps without switching.
The acquisition does not put any of Freenow’s 600 employees at risk. Despite half of Europe’s taxi bookings still happening offline, Lyft and Freenow believe demand for digital ride-hailing will grow. Taxis currently make up 90 percent of Freenow’s revenue, and the company plans to keep them as the core of its business.
Freenow has stated that riders can expect improved pricing consistency, faster driver matching, and new features following the Lyft deal. Meanwhile, Lyft, the second-largest ride-hailing service in the US behind Uber, is also pushing into autonomous vehicles. The company has partnered with Mobileye and others to introduce more self-driving cars into its network starting in 2025.
This acquisition strengthens Lyft’s global presence while giving Freenow access to Lyft’s technology and resources, setting the stage for further expansion in Europe’s evolving ride-hailing market.
