📰 Lyft Doubles Down with European Expansion

By acquiring FreeNow, Lyft aims to double its market reach and take on tough competition from Uber and Bolt. Could this be the move that finally makes Lyft a true global player?

American ride-hailing company Lyft LYFT 0.00%↑ has made a bold move to spread its wings internationally. With the $200 million acquisition of European mobility platform FreeNow, Lyft is officially stepping into the European market for the first time and not quietly either. With this deal, the company nearly doubles its potential market size overnight.

FreeNow is no small player. Active in over 150 cities across nine European countries, including major hubs like London, Paris, Frankfurt, and Milan, the company offers much more than just traditional taxis. Users can also hop on e-scooters, rent cars, or grab an e-bike through the app. It’s a smart strategy in a world where mobility is evolving fast, and people expect flexibility.

Perfect timing

Lyft CEO David Risher calls this "the right deal at the right time," and he might be onto something. Financially, Lyft is in a strong position, and Europe still holds massive untapped potential. Nearly half of the taxi rides across Europe are still booked the old-fashioned way, by phone or even by hailing on the street. That’s a huge opportunity for digital platforms like Lyft.

FreeNow has also reached a financial milestone: the company broke even in 2024 and reported a 13% revenue jump. So Lyft isn’t just buying market access; it’s acquiring a financially healthy business, which matters more than ever to investors looking for profitability rather than just growth promises.

Battle for the passenger

Of course, success won’t come easy. Uber has been in Europe for over a decade and knows the local markets inside and out. Estonia's Bolt and Israel’s Gett are also well-established players. On top of that, European regulators are tightening the screws on the ride-hailing industry, demanding better pay and working conditions for drivers.

But Lyft seems ready. After improving its service significantly in North America, faster pickup times, fewer cancellations, and better earnings for drivers, the company shows it can adapt and compete.

Grow or get left behind?

Expanding into Europe is a risk, but it’s also a massive opportunity. By nearly doubling its addressable market to over 300 billion personal trips per year, Lyft is setting itself up for serious growth. Even capturing a small slice of that pie could make a huge difference in its battle with Uber.

Will Lyft finally cement itself as a true global force? Time will tell. One thing is clear: standing still is no longer an option.

Source: Reuters, CNBC

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