US ride-hailing giant Lyft said it has agreed to acquire German taxi app FreeNow from BMW Group and Mercedes-Benz Mobility for €175 million in cash.
Users of the FreeNow app can access services including taxis, private hire vehicles (PHV) or ridesharing, carsharing, car rental, eScooters, eBikes, eMopeds and public transport.
“FreeNow will continue operating as it does today, with its talented leadership team and employees in place to drive growth across 9 countries and over 150 cities across Ireland, the United Kingdom, Germany, Greece, Spain, Italy, Poland, France, and Austria,” said the companies in a statement.
“The transaction is expected to close in the second half of 2025, subject to customary closing conditions.
“Lyft found in FreeNow a partner to immediately fuel its growth strategy, unlock potential for partners, and level up the experience for drivers and riders alike.
“This marks Lyft’s most significant expansion outside North America, nearly doubling Lyft’s total addressable market to more than 300 billion personal vehicle trips per year, increasing annualized Gross Bookings by approximately €1 billion, diversifying revenue streams, and supporting Lyft’s multi-year targets.”
Lyft CEO David Risher said: “We’re on an ambitious path to build the best, most customer-obsessed mobility platform in the world, and entering Europe is an important step in our growth journey.
“We found the perfect partner in FreeNow and can learn a lot from the team. FreeNow’s local-first approach mirrors Lyft’s values and embodies our purpose — to serve and connect.”
FreeNow CEO Thomas Zimmermann said: “Joining forces with Lyft is a powerful step forward for FreeNow and marks the beginning of an ambitious new phase—one where we strengthen our role as a leading force in European mobility.
“Lyft’s strong, customer-first track record aligns perfectly with our deep roots in the taxi industry, and together we will push boundaries and raise expectations for fleet owners, taxi drivers, and riders across the continent. We stand with the industry—not above it—and remain proud partners of the community.
“This collaboration is about combining our strengths, learning from each other, and scaling what works best. We sincerely thank our former shareholders for their trust and enduring partnership throughout the years.”
Guggenheim Securities, LLC is acting as financial advisor to Lyft, and Baker McKenzie is acting as its legal advisor. Lazard is acting as financial advisor to BMW Group and Mercedes-Benz Mobility, and DLA Piper is acting as their legal advisor.