FREENOW, THE TAXI app, has been acquired by Lyft today. 

Lyft announced today that it entered a definitive agreement, for approximately €175 million to acquire Freenow from its current owners, German carmakers BMW and Mercedes-Benz. The transaction is expected to close in the second half of 2025.

In an email to customers, Freenow said the app will continue to work as it is known today – with the same app, experience and team. 

It also said that once partnered with Lyft, the trips will be “even better.”

“That means things like faster and more reliable ride matching, expanded operational zones and new features designed with drivers and passengers in mind,” it said. 

Lyft is a North American ride hailing app, that offers rideshare, bikes and scooters – it’s second only to Uber in the US market for allowing users book trips with its drivers. Lyft had 23.7 million active riders in 2024.

The acquisition marked Lyft’s “most significant expansion outside North America”, the group said.

“Entering Europe is an important step in our growth journey,” Lyft CEO David Risher said in a statement, hailing Freenow as the “perfect partner”. 

The move would increase its gross annual bookings by one billion euros. In 2024, Lyft registered an equivalent sales figure of $4.3 billion.

Freenow operates across 9 countries and over 150 cities across Ireland, the United Kingdom, Germany, Greece, Spain, Italy, Poland, France, and Austria.

The taxi-hailing service would “continue to be the backbone of Freenow’s business”, the statement said.

Ridesharing firms, which rely on independent contractors to provide their services, have sometimes clashed with established taxi firms.

The tensions have proven a particularly sore point in Europe, where ridesharing services have faced greater scrutiny from officials than in the United States.

Freenow CEO Thomas Zimmermann said his group had “deep roots in the taxi industry” and would work together with drivers.

Freenow and Lyft added that “over time” the company will focus on integration for passengers to use either app across the Atlantic, whether in Europe or North America. 

With additional reporting from AFP