Lyft has acquired the ride-hailing app Freenow for approximately $197 million, marking its official entry into the European market. Previously, Lyft operated only in the United States and Canada. This acquisition extends Lyft's reach to over 150 cities across nine European countries, including major markets like the UK, France, Germany, Spain, and Italy.
Freenow, established in 2019, is a joint venture between BMW Group and Mercedes-Benz Mobility, aimed at consolidating their ride-hailing and taxi services. Ride-hailing companies have been striving to achieve economies of scale by increasing user numbers. With this acquisition, Lyft not only boosts its user base but also enters a competitive landscape dominated by Uber and the Estonia-based company Bolt.
Both Lyft and its competitors are expanding their platforms to include non-transportation services such as food delivery, courier services, and digital payment solutions. Although Lyft remains focused on the transportation sector, it faces a challenging battle in the diverse European market.
