Will Buying FREENOW Help Lyft Compete with Uber in Europe?
Lyft has completed its acquisition of European taxi app FREENOW following the approval of regulators, marking the US rideshare company's first expansion outside of North America.
The transaction, valued at approximately US$200m, will give Lyft access to FREENOW's operations across nine European countries including the UK, Germany, Spain and Italy.
Both companies will begin integrating their platforms on 7 August 2025, directing users to download complementary applications when travelling between regions.
Lyft riders visiting any of FREENOW's 180 European cities will now receive prompts to download the European app, while FREENOW customers in North America will be directed towards Lyft's platform.
"The goal will be to grow together," says Jeremy Bird, Lyft's EVP of Driver Experience
The companies plan to eventually eliminate the need for separate applications by making drivers available across both platforms.
How the transition will work
Lyft has confirmed it does not intend to reduce FREENOW'S workforce of approximately 600 employees following the acquisition.
"We will have some areas on the connection between North America and Europe where we might need additional folks," Jeremy explains.
"But the goal will be to take the current two organisations and just grow the overall top line and bottom line with that current team."
The approach suggests Lyft views the acquisition as a growth opportunity rather than a cost-cutting exercise — a view echoed by each company's CEO.
"Two companies, one aligned mission and the incredible opportunity of doubling Lyft’s current addressable market to more than 300 billion personal vehicle trips per year," says Thomas Zimmerman, CEO of FREENOW.
"We're enhancing FREENOW's unique strength: our strong European local ties. With Lyft's support, we can accelerate innovation and improve service for drivers, passengers and cities.
"A proud day for our teams on both sides of the Atlantic and especially for the FREENOW team, who’ve worked tirelessly to get us here."
“Every conversation I've had with FREENOW drivers and team members has reminded me why we’re joining forces: to bring the best of each company to the other,” says David Risher, CEO of Lyft.
Lyft's strategy for expansion and its competition with Uber
FREENOW'S established presence provides Lyft with immediate access to European markets where traditional taxi services still dominate.
Jeremy notes that around 50% of rides in Europe are still booked offline, which gives Lyft a huge opportunity when it comes to digitalisation.
"That's both growing share, growing rider share, growing the number of drivers on the platform in those places, but then also looking at the rest of Europe and where we should and could build this ecosystem," says Jeremy.
While major acquisitions like this are uncommon for Lyft, the US-based firm has been making inroads into Uber's market share by partnering with other large tech companies across the country.
Collaborations with the likes of DoorDash and Waymo have helped Lyft secure a foothold in the US economy.
It is thought that Lyft's integration with FREENOW will do the same across Europe, where Uber is equally dominant.
Regulatory relationships
FREENOW'S established relationships with European regulators and driver communities represent a key strategic asset for Lyft's expansion plans.
These connections could prove crucial as Lyft navigates varying regulatory frameworks across European markets.
The acquisition provides Lyft with operational infrastructure that would have taken years to develop independently in fragmented European markets.
This represents Lyft's most significant strategic move since focusing on core North American operations following unsuccessful international ventures in previous years.
