American ride-hailing company Lyft announced it has purchased a European taxi app in a €175 million deal.
The acquired company, named FREENOW, was purchased from BMW Group and Mercedes-Benz Mobility.
This marks Lyft’s largest expansion outside North America, with the new app opening-up the European taxi market to the American company.
David Risher, CEO of Lyft, 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.”
In Europe the taxi aggregation business is strong and growing, with FREENOW already operating in several major European cities, including Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg, with luxury vehicles making up a significant portion of its fleet.
FREENOW’s 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.”
The announcement follows a record-breaking year in 2024 for Lyft, with company reaching an all-time high of 44 million annual riders.
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