Ride-hailing giant Lyft said it has agreed to acquire FREENOW, a German multi-mobility app with ride-hail at its core, from BMW and Mercedes-Benz Mobility for about $197 million in cash. 

The acquisition opens up the European market to Lyft for the first time. The company has only operated in the U.S. and Canada since it launched in 2012, compared to its biggest rival Uber, which operates globally. 

FREENOW operates in nine countries and more than 150 cities across Austria, France, Germany, Greece, Ireland, Italy, Poland, Spain and the United Kingdom. The transaction is expected to close in the second half of 2025. 

The move comes a few months after FREENOW shared that its strategic focus on its taxi business resulted in year-on-year growth of 13%, and that it was hitting break-even. 

Lyft said the merger would nearly double its total addressable market to more than 300 billion personal vehicle trips per year, and increase annualized gross bookings by about $1.14 billion. 

“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, CEO of Lyft, in a statement. “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.”

In a statement this week, BMW and Mercedes-Benz Mobility said they would continue to focus on their core operations in addition to electrification, AI and decarbonization. 

Lyft said there will be no immediate changes to FREENOW’s customer experience, but that “over time, new benefits will be made available to FREENOW drivers and riders.” It said the two companies will focus on integration so riders can use either app when they’re in North America or Europe.