An important step in global expansion! Lyft spent $197 million to acquire the European ride-hailing app Freenow
Lyft has agreed to acquire the European ride-hailing app Freenow for approximately €175 million (about $197 million), marking its first global expansion outside the United States and Canada. The transaction is expected to be completed in the second half of 2025, with Freenow continuing to operate in over 150 cities across 9 countries. This move will nearly double Lyft's potential market size, increasing the annual gross bookings by approximately €1 billion. Following the announcement, Lyft's stock price rose by 1.93%
According to a statement released on Wednesday, Lyft (LYFT.US) has agreed to acquire the European ride-hailing app Freenow for approximately €175 million (about $197 million), marking its first global expansion outside of the United States and Canada.
Lyft will acquire the app through a cash transaction from BMW Group and Mercedes-Benz Mobility, with the deal expected to be completed in the second half of 2025. Lyft stated that Freenow will continue to operate in over 150 cities across nine countries, including Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France, and Austria. Last month, foreign media reported that BMW and Mercedes were considering selling Freenow.
While Lyft is well-known in the United States and Canada, its operations have not yet extended beyond North America. In contrast, its much larger industry rival, Uber Technologies (UBER.US), operates in over 70 countries worldwide.
Lyft stated in the announcement: "This is Lyft's most significant expansion initiative outside of North America, nearly doubling its potential market size to over 300 billion personal ride-hailing demands annually, increasing annual gross bookings by approximately €1 billion ($1.14 billion), diversifying revenue sources, and helping to achieve Lyft's multi-year goals."
Guggenheim Securities LLC is serving as Lyft's financial advisor, while investment bank Lazard is providing advisory services to the seller.
Following the announcement, as of the time of publication, Lyft's stock price rose 1.93% in pre-market trading
