BMW and Mercedes-Benz are close to finalizing a deal to sell their jointly owned mobility app, FreeNow, to U.S. ride-hailing firm Lyft, German business publication Manager Magazin reported, citing industry sources.
The two German automakers have been seeking a buyer for FreeNow for several months and are now in advanced discussions with Lyft, the report said. While initial valuations reportedly reached as high as 500 million euros ($540 million), the sale price is now expected to be in the “mid-double-digit million” range, according to the publication. Neither BMW, Mercedes-Benz, nor Lyft have publicly commented on the matter.
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FreeNow, a ride-hailing and mobility platform available in more than 150 European cities, was originally built around MyTaxi, a service later expanded to include e-scooters, car-sharing, and rental cars. The platform has also been part of local initiatives promoting electric mobility, such as Hamburg’s ‘ZukunftsTaxi’ program.
The reported talks follow earlier reports that BMW and Mercedes-Benz had hired investment bank Lazard to explore potential buyers, with interest reportedly coming from companies including Uber and South Korea’s Kakao Mobility. Manager Magazin stated that Lyft has already recruited experts familiar with the European mobility market in preparation for a potential deal.
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BMW and Mercedes-Benz, which each own approximately 50% of FreeNow, established their mobility joint venture in 2019. The move came as part of broader efforts by traditional automakers to expand into digital mobility services. However, parts of the joint venture have already been sold off, including the car-sharing service ShareNow, which was acquired by Stellantis subsidiary Free2Move in 2022.
Industry analysts view the potential acquisition as a significant step for Lyft, which has so far focused primarily on the U.S. market. A deal would provide Lyft with an established foothold in Europe, allowing it to compete more directly with Uber and other regional mobility providers.
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“If finalized, this acquisition could be a strategic move for Lyft to accelerate its expansion into the European ride-hailing market,” said one industry expert familiar with the discussions. “FreeNow already has strong brand recognition and partnerships, which would give Lyft a head start in key cities.”
The potential sale of FreeNow aligns with broader trends in the mobility sector, where traditional car manufacturers have been reassessing their investments in digital ride-hailing services amid shifting market dynamics. It remains unclear when an official announcement might be made, but reports suggest negotiations are in their final stages.