Lyft Enters Europe with $200M Acquisition of FreeNow

Lyft is making its long-awaited move into the European market through a $198.4 million acquisition of mobility platform FreeNow from German automakers BMW and Mercedes-Benz. The deal nearly doubles Lyft’s addressable market and marks a major strategic push beyond North America, where the company has faced stiff competition from Uber.

FreeNow operates in over 150 cities across nine European countries, including major hubs like London, Paris, Frankfurt, and Milan. Its offerings span traditional taxis, e-scooters, and car-sharing services. FreeNow hit break-even last year after a 13% revenue jump, positioning it as a strong springboard for Lyft’s international ambitions.

Lyft CEO David Risher called the move “a great time and a great price,” noting the company’s financial readiness for expansion. However, Lyft will face a tough road ahead competing against European ride-hailing heavyweights like Uber and Estonia-based Bolt, especially amid tightening regulations that demand better wages and benefits for drivers. Still, with nearly half of Europe’s taxi market still offline, Lyft sees enormous growth potential in digitizing traditional transport services.