Lyft Secures European Foothold With Strategic Freenow Purchase

2025-04-17 01:42:56

(MENAFN- The Arabian Post)

Lyft has announced its entry into the European ride-hailing market through the acquisition of FreeNow, a mobility platform jointly owned by BMW and Mercedes-Benz, for €175 million . This strategic move nearly doubles Lyft's addressable market, expanding from 161 billion to over 300 billion personal vehicle trips annually.

FreeNow operates in more than 150 cities across nine European countries, including major urban centres such as London, Paris, Frankfurt, and Milan. The platform offers a range of services, from traditional taxis to e-scooters and car-sharing options.

David Risher, CEO of Lyft, described the acquisition as timely, citing the company's strong financial position and the opportunity to tap into Europe's largely offline taxi industry.“Almost half of the taxi industry in Europe is still offline,” noted Thomas Zimmermann, CEO of FreeNow, highlighting the significant growth potential in digitising traditional taxi services.

In 2024, FreeNow achieved break-even status, driven by a 13% year-on-year revenue increase, primarily from its taxi operations. The company's focus on modernising the taxi sector includes partnerships with offline dispatchers and initiatives to digitise their businesses.

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