BUSINESS NEWS


LYFT EXPANDS IN EUROPE AND DIVERSIFIES BY ACQUIRING FREENOW


Lyft, Inc. (Nasdaq: LYFT), a leading ride hailing marketplace, has announced it has entered into a definitive agreement to acquire FREENOW, a leading European multi-mobility app with a taxi offering at its core, from BMW Group and Mercedes-Benz Mobility for approximately €175 million or $197 million* in cash. FREENOW will continue operating as it does today, with its leadership team and employees in place to drive growth across 9 countries and over 150 cities across Ireland, the United Kingdom, Germany, Greece, Spain, Italy, Poland, France, and Austria. The transaction is expected to close in the second half of 2025, subject to


customary 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 David Risher, CEO of Lyft. “We found the perfect partner in FREENOW and can learn a lot from the team. FREENOW’s local- first approach mirrors Lyft’s values and embodies our purpose - to serve and connect.” FREENOW brings market-leading European taxi expertise, fleet technology and strong relation- ships with regulators, unions and taxi fleet operators in every market. Lyft brings best-in-class marketplace


expertise and


customer-obsessed features. The business models are com- plementary and together will serve over 50 million combined


PHTM MAY 2025


annual riders, with plans to deliver a better product experience, improve service levels, strengthen fleet management capabilities, and bring greater global opportunities to


existing and


potential partners. In Europe, the taxi aggregation business is strong and growing. Approximately 50% of taxi bookings in Europe still happen offline, but customers are hungry for more online bookings. FREENOW is primed to capitalise on that opportunity. FREENOW is the leading taxi platform in several major European cities, including Dublin, London, Athens, Berlin, Barcelona, Madrid, and Hamburg, with luxury vehicles making up a significant portion of its fleet. Taxis accounted for approximately 90% of FREENOW’s Gross Bookings in 2024 and will continue to be the backbone of FREENOW’s business. “Joining forces with Lyft is a powerful step forward for FREENOW and marks


the


beginning of an ambitious new phase - one where we strengthen our role as a leading force in European mobility,” said FREENOW CEO Thomas Zimmer- mann. “Lyft’s strong, customer-first track record aligns perfectly with our


deep roots in the taxi industry, and together we will push boundaries and raise expectations for fleet owners, taxi drivers, and riders across the continent. We stand with the industry - not above it - and remain proud partners of the community. This collaboration is about combining our strengths, learning from each other, and scaling what works best. We sincerely thank our former shareholders for their trust and enduring partnership throughout the years.” The strategic acquisition is aligned with Lyft’s disciplined capital allocation strategy of investing in attractive growth opportunities with a customer-obsessed bias. The announcement follows


a


record-breaking year in 2024 for Lyft, with industry-leading service levels in Q4, record Gross Bookings, GAAP profitability, and record cash flow generation. WHAT’S NEXT: While there will be no immediate changes to FREENOW’s customer experience, over time, new benefits will be made available to FREENOW drivers and riders. For drivers in many markets, that may look like more transparency around their earnings such as when to expect incentives and real-time information on the best times to drive. For riders, that may look like more consistent pricing, faster matching, and new features and modes. The companies will also focus on integration for riders to seamlessly use either app across the Atlantic, whether they’re in North America or Europe.


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