Taxi app FreeNow has been acquired by US ride-sharing company Lyft in a cash deal worth €175m.
The deal will enable Nasdaq-listed Lyft to enter the European market, and FreeNow will continue to operate as it currently does.
Jointly owned by BMW and Mercedes-Benz, FreeNow operates in 150 cities in nine countries (Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France and Austria).
The transaction is expected to close in the second half of this year, subject to customary closing conditions.
The acquisition is Lyft's most significant expansion outside North America to date and will double the company's total addressable market to more than 300bn personal vehicle trips per year, and increase gross bookings by approximately €1bn.
“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.”
The companies expect to serve 50m combined annual customers, and Lyft has plans to improve service levels and product experience and strengthen fleet management capabilities.
“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 Thomas Zimmermann, CEO of FreeNow
“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.”
FreeNow was founded in 2011 as Hailo and rebranded as MyTaxi after being acquired by Daimler in 2016 before being rebranded again when BMW became a joint owner.
FreeNow Ireland generated turnover of €46.1m in 2023, up from €38.4m the previous year, with profit growing 9% from €4.3m to €4.7m.
Photo: Charlie Gleeson, general manager, FreeNow Ireland. (Pic: Conor McCabe Photography)
