Lyft Inc (NASDAQ:LYFT) on Wednesday announced it is acquiring the European multi-mobility app FREENOW from BMW Group and Mercedes-Benz Mobility for €175 million (US$197) million in cash.
The acquisition marks Lyft’s largest move beyond North America, expanding its presence to nine European countries and more than 150 cities.
FREENOW, which centers on a taxi-based offering, will continue operating independently with its existing leadership and team.
The acquisition is set to nearly double Lyft’s total addressable market, adding roughly €1 billion in annualized Gross Bookings.
“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,” Lyft CEO David Risher said.
Thomas Zimmerman, FREENOW CEO, added: “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 acquisition is expected to close in the second half of 2025.
Shares of Lyft traded higher following the announcement, up 1.5% at about US$11.