Lyft agrees to buy FreeNow for $200 mn in bid to grow European presence

Investing.com - Lyft (NASDAQ:LYFT) has agreed to acquire mobility app FreeNow for 175 million euros as part of a bid by the taxi service to expand its presence in Europe.

The move comes as Lyft looks to harness new revenues sources in the face of intense competition in the U.S. with rival Uber Technologies (NYSE:UBER).

In a statement, Lyft said the transaction, which was worth roughly $197 million in cash, will leave FreeNow "operating as it does today," with the German taxi-hailing platform being used in 150 cities across Europe. FreeNow, initially a joint venture between automakers BMW (ETR:BMWG) and Mercedes-Benz (OTC:MBGAF) in February 2019, said last September that it had reached break-even status following a 13% year-on-year jump in 2024 revenue.

The deal is tipped to close in the second half of 2025, pending closing conditions.

“We’re on an ambitious path to build the best, most customer-obsessed mobility platform in the world, and entering Europe is an important step in our growth journey,” said Lyft CEO David Risher. “We found the perfect partner in FreeNow and can learn a lot from the team."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Is BMWG truely undervalued?

With BMWG making headlines, investors are asking: Is it truly valued fairly? InvestingPro's advanced AI algorithms have analyzed BMWG alongside thousands of other stocks to uncover hidden gems with massive upside. And guess what? BMWG wasn't at the top of the list.

Unlock ProPicks AI