In a major strategic move, Lyft has officially acquired FreeNow, a popular European ride-hailing platform, from BMW and Mercedes-Benz for approximately $198.4 million USD. This acquisition, announced on April 16, 2025, marks Lyft’s first expansion beyond North America and positions the company to compete more directly with global ride-hailing giants like Uber and Bolt.
FreeNow operates in over 150 cities across nine European countries, offering services ranging from traditional taxis to e-scooters and car-sharing. With this acquisition, Lyft’s total addressable market doubles, growing from 161 billion to over 300 billion personal vehicle trips per year.
Lyft plans to integrate its core technology and safety features into FreeNow’s existing infrastructure while preserving the brand’s local appeal. According to company officials, the expansion aims to enhance customer options, increase revenue, and build a stronger global footprint.
However, the company must overcome regulatory challenges. European governments are pressing ride-hailing companies to offer improved driver benefits, such as minimum wage guarantees and holiday pay, which could impact profit margins.
This bold move is a clear indication of Lyft’s commitment to global growth and its determination to challenge Uber’s dominance in the global mobility market.