The acquisition is expected to increase Lyft’s annual gross bookings by €1bn.
US-based ride hailing service Lyft is acquiring Free Now, a popular multi-mobility taxi app in Europe, for €175m as it looks to expand in the region.
According to the company, the acquisition – Lyft’s first in Europe – is expected to close in the second half of this year.
Free Now, which was founded in 2009 as ‘mytaxi’, was acquired by German automotive leaders BMW and Mercedes-Benz in 2019.
The service operates in 150 cities across nine European countries including Ireland, the UK, Germany and Greece.
It offers access a variety of mobility services including taxis, car sharing, car rental, e-scooters and public transport. Taxi services accounted for approximately 90pc of its gross bookings last year.
Combined, the two businesses will serve more than 50m annual users and increase Lyft’s shared addressable market to more than 300bn personal vehicle trips per year.
The acquisition is expected to increase Lyft’s annual gross bookings by approximately €1bn.
According to Lyft, the acquisition will not immediately change much for Free Now, which will continue operating as normal, retaining its leadership and employees.
Moreover, the acquisition, according to US company, will “level up the experience for drivers and riders alike”, fuel Lyft’s growth and unlock the potential for partners.
“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, the CEO of Lyft.
Free Now CEO Thomas Zimmermann said that the acquisition marked a “powerful step forward” for the business.
“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,” he added.
Last year, Free Now appointed ex-Amazon executive Danny O’Gorman as its general manager in Ireland.
Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.
