US ride-hailing giant Lyft has completed its acquisition of European taxi app Freenow for approximately €175 million, marking the company’s major expansion into the European market.
The deal, first announced in April, sees Lyft acquire Freenow from German carmakers BMW and Mercedes-Benz. Lyft, which has 23.7 million active riders and ranks second to Uber in the US market, said the acquisition will double its addressable market to over 300 billion personal vehicle trips annually.
For Irish and European users, Lyft promises “more consistent pricing and faster matches” in the coming months. The integration will see Freenow users prompted to download Lyft when traveling to the US and Canada, while Lyft users visiting Europe will be directed to Freenow.
Lyft CEO David Risher said the move will “bring out the best of each company to the other,” while Freenow CEO Thomas Zimmerman emphasized that European users will see their service “amplified” with access to Lyft’s platform and resources.
The acquisition targets Europe’s fragmented taxi market, where approximately 50% of bookings still occur offline. Lyft said it remains committed to strengthening Freenow’s relationships with regulators, cities, unions, and fleet operators across Europe.
Drivers on both platforms are expected to benefit from increased ride opportunities through cross-platform integration.