The U.S. ride-hailing firm Lyft has formally agreed to accumulate FREENOW, a outstanding European multi-mobility app centered round taxi providers, from BMW Group and Mercedes-Benz Mobility for roughly €175 million (or $197 million) in money.
FREENOW will preserve its present operations, persevering with to develop beneath its expert management and crew throughout 9 nations and over 150 cities, together with Eire, the UK, Germany, Greece, Spain, Italy, Poland, France, and Austria. The transaction is anticipated to shut within the latter half of 2025, pending customary closing situations.
This acquisition presents Lyft with a chance to boost its development technique, unlock potential for companions, and enhance the general expertise for each drivers and riders. It signifies Lyft’s most vital growth past North America, successfully doubling its complete addressable market to exceed 300 billion private automobile journeys yearly, boosting annual Gross Bookings by round €1 billion, diversifying income streams, and supporting Lyft’s multi-year initiatives.
David Risher, CEO of Lyft, acknowledged, “We’re on an formidable path to construct the very best, most customer-obsessed mobility platform on this planet, and coming into Europe is a crucial step in our development journey. We discovered the right companion in FREENOW and may be taught lots from the crew. FREENOW’s local-first method mirrors Lyft’s values and embodies our objective — to serve and join.”
FREENOW brings intensive European taxi experience, superior fleet know-how, and robust relationships with regulators, unions, and taxi operators in each market, whereas Lyft contributes its market experience and customer-focused options. Collectively, they may serve a mixed annual rider base of over 50 million, with plans to boost product expertise, elevate service ranges, enhance fleet administration, and create better international alternatives for present and potential companions.
In Europe, the taxi aggregation enterprise continues to thrive and develop. Notably, round 50% of taxi bookings nonetheless happen offline, indicating a major demand for on-line reserving choices. FREENOW is well-positioned to grab this chance, being the main taxi platform in main European cities similar to Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg, with a substantial portion of its fleet consisting of luxurious automobiles. Taxis represented about 90% of FREENOW’s Gross Bookings in 2024 and can stay central to its operations shifting ahead.
FREENOW CEO Thomas Zimmermann remarked, “Becoming a member of forces with Lyft is a robust step ahead for FREENOW and marks the start of an formidable new section—one the place we strengthen our function as a number one power in European mobility. Lyft’s sturdy, customer-first observe file aligns completely with our deep roots within the taxi {industry}, and collectively we’ll push boundaries and lift expectations for fleet house owners, taxi drivers, and riders throughout the continent. We stand with the {industry}—not above it—and stay proud companions of the neighborhood. This collaboration is about combining our strengths, studying from one another, and scaling what works finest. We sincerely thank our former shareholders for his or her belief and enduring partnership all through the years.”
This strategic acquisition is according to Lyft’s disciplined capital allocation technique centered on investing in interesting development alternatives with a customer-centric method. The announcement comes on the heels of a record-breaking yr for Lyft in 2024, marked by industry-leading service ranges, file Gross Bookings, GAAP profitability, and spectacular money stream technology.
Wanting forward, whereas FREENOW’s buyer expertise won’t change instantly, new advantages will probably be launched for FREENOW drivers and riders over time. Drivers in lots of markets can anticipate better transparency concerning their earnings, together with insights on incentives and real-time information on optimum driving occasions. For riders, enhancements could embrace extra constant pricing, quicker journey matching, and new options. Moreover, the businesses will goal to combine their providers, permitting riders to seamlessly use both app, whether or not they’re in North America or Europe.
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