U.S. ride-hailing firm Lyft said it will acquire European mobility platform FREENOW in a move aimed at expanding its global presence and increasing its total addressable market to over 300 billion personal vehicle trips annually.
The deal marks Lyft’s first major push into the European market and comes months after FREENOW reported 13% year-on-year growth in its taxi business and achieved break-even. The financial terms of the agreement were not disclosed.
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“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 in a statement. “We found the perfect partner in FREENOW and can learn a lot from the team. FREENOW’s local-first approach mirrors Lyft’s values and embodies our purpose — to serve and connect.”
Lyft expects the acquisition to increase annualized gross bookings by approximately $1.14 billion. The company emphasized that existing FREENOW users and drivers will not see immediate changes in service, though both platforms will gradually integrate to allow riders to use either app while traveling in North America or Europe.
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Meanwhile, BMW and Mercedes-Benz Mobility, the former joint owners of FREENOW, said they will now concentrate on their core operations, including electrification, artificial intelligence, and decarbonization initiatives.