The Lyft logo can be seen in this image taken on June 27, 2022.
Dado Ruvic | Reuters
US ride company Lyft announced Wednesday it is buying a European taxi app for free on a deal of 175 million euros ($109 million).
The company is expected to close the acquisition (Lyft was the first in Europe) in the second half of 2025, and once combined, the two companies will serve more than 50 million users per year.
Founded in 2009 as MyTaxi, Free is a riding platform headquartered in Hamburg, Germany. The company has been jointly owned by German automotive giant BMW and Mercedes-Benz since 2019.
The app is available in over 150 cities in nine countries, including Ireland, the UK, Germany and France. Beyond traditional taxi and riding services, Free also offers other mobility options such as e-Scooter, e-Moped and e-bikes.
According to the company fact sheet, the startup was positive for revenue based on interest, liabilities, revenue before amortization, liabilities and revenue before amortization, generating gross reservations in 2024.
“It’s time now.”
By getting it for free now, Lyft gives you a route to expand into the highly competitive European riding market. There, they will face Uber, Estonia’s Bolt, Israel’s Gett and more.
Lyft CEO David Risher told CNBC that the company is currently only in Europe as it has an opportunity to expand after steadily improving its North American services.
Noting that Thursday will mark its second anniversary as CEO of Lyft, Risher said:
“Now we’re going to pick you up about a minute faster. Driver cancellations are under 5%, and drivers are making billions of dollars on the platform.
He added: “So we look at the strong service levels and see the fact that we are doing pretty well internationally within Canada.
Lyft’s closest domestic rival, Uber, first launched in the UK in 2012 and has since been plagued by a series of regulatory issues.
London’s transport regulators have tried to ban Uber twice over safety concerns. The company was ultimately awarded a fresh license to continue operating in the city in 2022.
