Ride-hailing service Lyft has announced its decision to acquire FREENOW, a prominent German multi-mobility app, for approximately $197 million in cash. This acquisition marks Lyft’s entry into the European market, a significant expansion for a company that has predominantly operated in the U.S. and Canada since its inception in 2012, contrasting with its main competitor, Uber, which has a global presence.
FREENOW, which is managed by BMW and Mercedes-Benz Mobility, offers services across nine countries and over 150 cities, including major European locations such as Germany, France, and the UK. The transaction is projected to conclude in the latter half of 2025.
Notably, FREENOW has recently reported a successful shift in focus towards its taxi operations, achieving a 13% growth year-on-year and reaching break-even status. Lyft anticipates that integrating FREENOW will significantly enhance its market reach, nearly doubling its addressable market to over 300 billion personal vehicle trips annually and increasing annual gross bookings by around $1.14 billion.
Lyft Chief Executive David Risher expressed enthusiasm for the merger, highlighting the alignment of FREENOW’s local-first approach with Lyft’s values, stating, “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.”
Meanwhile, BMW and Mercedes-Benz Mobility reaffirmed their commitment to focusing on core operations, including advancements in electrification, artificial intelligence, and decarbonisation, following the sale.
For the immediate future, Lyft has assured that there will be no abrupt changes to FREENOW’s customer experience. The company plans to integrate services over time, offering enhanced benefits to FREENOW drivers and riders, allowing them to utilise either platform seamlessly, whether in North America or Europe.
Fanpage: TechArena.au
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