Lyft cars in Germany? What a sight. You know Lyft as a huge American ridesharing brand. Now, it is making its European presence as it has agreed to buy its rival in Germany, Freenow. The Ridesharing Forum team has more.
Historic acquisition
During mid-week, the United States-based ridesharing company Lyft announced it is buying Freenow, a German taxi app, hoisting a flag for American ride-hailing platforms in the European market.
The acquisition was worth around $199 million, with Lyft taking over Freenow from its current owners, none other than BMW and Mercedes-Benz. So, that’s how wealthy Lyft is right now.
David Risher, Lyft’s chief executive officer, stated that entering Europe “is an important step” in the platform’s “growth journey.” He added that Freenow is the company’s “perfect partner.”
‘Most significant expansion beyond North America’
Lyft also stated how this acquisition is “the most significant expansion outside North America.”
This landmark move is expected to increase bookings via Lyft by a whopping $1 billion, gross and annually.
In 2024, the media reported how Lyft registered an equivalent sales figure of $4.3 billion.
The rise of Freenow?
Freenow is a European ridesharing service that connects customers with offers, and short-term car and scooter rentals, but Freenow is unique because unlike Lyft, 90 percent of its bookings were for taxis. Its taxi-hailing service is the “backbone of Freenow’s business,” the media added.
The platform is based in Germany but offers services in nine European countries: Austria, France, Germany, Greece, Ireland, Italy, Poland, Spain, and the United Kingdom. It is present in over 150 cities.
“Its users can access various mobility services within a single app, including taxis, PHV, carsharing, car rental, eScooters, eBikes, eMopeds, and public transport,” stated Freenow.
Freenow further noted how it partners with several mobility brands and aggregates their offering with the goal of making urban mobility more efficient and sustainable without adding in the burden with new cars on the street.
“We aim to provide mobility that sets people free, so they can get where they want in life,” it stated, which is wonderful at that.
Disrupting taxi firms, or not?
Lyft does not have a taxi service, so will its acquisition of Freenow shake things up? Well, even if ridesharing firms are finding itself clashing with established taxi firms, even in Europe where the tensions are a “sore point,” prompting European ridesharing companies to face the baddest scrutiny from officials just like in the United States, Freenow is confident is saying its partnerships with taxi operators will continue even with the acquisition.
Thomas Zimmermann, the CEO of Freenow, stated how his group had “deep roots in the taxi industry.” They will continue to work together with taxi drivers who will be collaborating with Lyft drivers, too.
“We stand with the industry – not above it – and remain proud partners of the community,” stated Zimmermann.