Lyft, the American ride-hailing giant, has made a significant move in the European market by acquiring FreeNow, a popular mobility app, from automotive giants BMW and Mercedes-Benz for €175 million (approximately 750 million zł). This acquisition, announced on April 16, 2025, marks Lyft's most important expansion outside North America and is poised to reshape the landscape of ride-hailing services across Europe.
FreeNow, which operates in nine countries and over 150 cities including Poland, will continue its operations without any immediate changes. Customers can expect the same app and support team that they have grown accustomed to. In a statement to Polish users, FreeNow assured, "FreeNow will continue to operate as it does today — the same app and user experience, the same support team." This reassurance comes at a time when the European ride-hailing market is becoming increasingly competitive.
The acquisition is seen as a strategic move for Lyft, enabling the company to tap into a market that is valued at over €300 billion annually in rides. Lyft's CEO, David Risher, emphasized the importance of this expansion, stating, "We are on an ambitious path to build the best, most customer-focused mobility platform in the world, and entering Europe is a milestone on our development path." With this acquisition, Lyft aims to transport up to 50 million passengers each year, significantly increasing its annual gross bookings by nearly €1 billion.
FreeNow has been a key player in the European ride-hailing scene, offering a range of services from traditional taxis to e-scooter rentals. Thomas Zimmermann, the director of FreeNow, highlighted the potential for growth in the European market, noting that "almost half of the taxi industry in Europe still operates offline." This presents a promising opportunity for Lyft and FreeNow to capture a larger share of the market.
However, the acquisition does not come without challenges. Lyft will face stiff competition from established players like Uber and Bolt, both of which have already secured a strong foothold in Europe. Uber, in particular, has seen its market capitalization soar to $155 billion, while Lyft's shares have dropped by 20% this year. In contrast, Uber's stock has risen by 17% during the same period, underscoring the competitive landscape Lyft is entering.
The transaction is expected to be finalized in the second half of 2025, and both companies have expressed their intent to eventually enable seamless use of their applications on both sides of the Atlantic. As the ride-hailing industry continues to evolve, regulatory pressures in Europe are also mounting, with authorities emphasizing the need for improved working conditions for drivers, including guaranteed minimum wages and paid leave.
In conclusion, Lyft's acquisition of FreeNow could be a game-changer in the European ride-hailing market. By leveraging FreeNow's existing infrastructure and customer base, Lyft is positioning itself as a formidable competitor against Uber and Bolt. As the market dynamics shift, it will be interesting to see how Lyft navigates the challenges ahead while striving to expand its reach and enhance its service offerings across Europe.
