Global expansion is an important step! Lyft (LYFT.US) has invested 197 million US dollars to acquire the European ride-hailing app Freenow.

According to a statement released on Wednesday, Lyft (LYFT.US) has agreed to acquire the European ride-hailing app Freenow for about 175 million euros (approximately 197 million US dollars), marking its first global expansion outside of the United States and Canada. Lyft will acquire the app from BMW Group and Mercedes-Benz Mobility through a cash transaction, with the deal expected to close in the second half of 2025. Lyft stated that Freenow will continue to operate in over 150 cities in 9 countries including Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France, and Austria. Foreign media reported last month that BMW and Mercedes were considering selling Freenow. While Lyft is well-known in the United States and Canada, its business has not yet expanded to regions outside of North America. In contrast, its much larger rival Uber Technologies, Inc. (UBER.US) operates in over 70 countries worldwide. In a statement, Lyft said, "This is Lyft's most significant expansion outside of North America, nearly doubling its potential market size to over 300 billion annual personal ride trips, increasing annual total bookings by approximately 1 billion euros (1.14 billion US dollars), diversifying revenue sources, and helping to achieve Lyft's long-term goals." Guggenheim Securities LLC is serving as Lyft's financial advisor, while the investment bank Lazard is providing advisory services to the sellers. Following the announcement, as of the time of writing, Lyft's stock price has risen by 1.93% in pre-market trading.