U.S. ride-hailing company Lyft revealed plans to acquire European taxi app Free Now for 175 million euros ($199 million) in a move that will expand its reach into the European market. This acquisition, Lyft’s first in Europe, is set to close in the second half of 2025. Once combined, the two companies will serve over 50 million annual users across the continent.
Free Now, originally founded in 2009 as myTaxi, is headquartered in Hamburg, Germany. The platform has been co-owned by German automotive giants BMW and Mercedes-Benz since 2019. Free Now operates in over 150 cities across nine countries, including the U.K., Germany, France, and Ireland. In addition to traditional taxi and ride-hailing services, Free Now offers other mobility solutions like e-scooters, e-mopeds, and e-bikes. The company has been profitable based on its earnings before interest, debt, and amortization (EBIDA), with gross bookings exceeding 1 billion euros in 2024, as outlined in its company profile.
For Lyft, acquiring Free Now presents an opportunity to break into Europe’s competitive ride-hailing market, where it will face fierce competition from major players like Uber, Bolt from Estonia, and Israel’s Gett. The acquisition allows Lyft to expand its offerings and tap into an established European user base.
Lyft CEO David Risher shared that the company is entering Europe now because it has seen improvements in its North American operations, which have set a strong foundation for international growth. Reflecting on his two-year anniversary as CEO, Risher highlighted the improvements Lyft has made, including faster pick-ups, reduced driver cancellations, and a significant increase in driver earnings. He also noted the company’s success in Canada, where its operations have doubled in the past year.
This expansion comes at a time when Lyft’s main competitor, Uber, has already established a foothold in Europe, having launched in the U.K. in 2012. Uber has faced regulatory hurdles in the region, with London’s transport regulators attempting to ban the company twice due to safety concerns. However, Uber was granted a new operating license in 2022. Lyft’s entry into Europe is seen as an important move to catch up with Uber and gain a share of the rapidly growing market.
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