LYFT Stock Rallies After Ride-Hailing Company Acquires European Multi-Mobility App FREENOW

Ride-hailing firm LYFT said on Wednesday it will acquire European multi-mobility app FREENOW from BMW Group and Mercedes-Benz Mobility for approximately €175 million ($197 million) in cash.

FREENOW is available in nine European countries and over 150 cities. Its users can access various mobility services within a single app, including taxis, private hire vehicles (PHV) or ridesharing, carsharing, car rental, eScooters, eBikes, eMopeds and public transport.

LYFT said the acquisition marks its most significant expansion outside North America, nearly doubling its total addressable market to more than 300 billion personal vehicle trips per year. The transaction is expected to close in the second half of 2025.

The company said the deal would increase its annualized gross bookings by approximately €1 billion and diversify revenue streams, supporting its multi-year targets.

CEO David Risher said that LYFT is on an ambitious path and entering Europe is an important step in its growth journey.

“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,” he said.

LYFT highlighted that the business models are complementary and will serve its 50 million combined annual riders.

“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,” the company said.

Shares of LYFT rallied over 2% in Wednesday’s pre-market following the announcement. The stock has lost over 20% in 2025 and over 40% in the past 12 months.

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