US ridesharing company Lyft stated Wednesday it had agreed to shop for German taxi app Freenow, planting a flag within the Eu marketplace.
Lyft stated it had signed a deal to procure Freenow from its present homeowners, German carmakers BMW and Mercedes-Benz, for 175 million euros ($199 million).
“Getting into Europe is the most important step in our expansion adventure,” Lyft CEO David Risher stated in a observation, hailing Freenow because the “easiest spouse”.
The purchase marked Lyft’s “most important enlargement out of doors North The us”, the gang stated.
The transfer would build up its gross annual bookings by means of a thousand million euros. In 2024, Lyft registered an similar gross sales determine of $4.3 billion.
Freenow is based totally in Germany however gives products and services in 9 Eu international locations, together with France, Poland and the UK.
The provider connects shoppers with ridesharing gives, in addition to non permanent automotive and scooter leases, however 90 % of Freenow’s bookings have been for taxis.
The taxi-hailing provider would “proceed to be the spine of Freenow’s industry”, the observation stated.
Ridesharing companies, which depend on unbiased contractors to supply their products and services, have every so often clashed with established taxi companies.
The tensions have confirmed a specifically sore level in Europe, the place ridesharing products and services have confronted better scrutiny from officers than in america.
Freenow CEO Thomas Zimmermann stated his crew had “deep roots within the taxi business” and would paintings in conjunction with drivers.
“We stand with the business — no longer above it — and stay proud companions of the neighborhood,” Zimmermann stated.
This tale used to be initially featured on Fortune.com
