Everything people should know about Lyft as it enters European market for the first time

Ride-hailing company Lyft is coming to Europe following a $200 million acquisition that will see it become operational in Europe

For 175 million Euros ($198.40 million), American company Lyft, Inc. has purchased the mobility platform FreeNow from German car giants BMW and Mercedes-Benz as it plans to expand its operations into Europe, said the company on Wednesday (16 April).

Lyft offers ride-hailing services, as well as motorised scooter and bicycle-sharing systems and currently operates in America and Canada.

It comes as the company faces fierce competition from the dominant ride-hailing company Uber in North America and is seeking out ways to grow the business.

Presently, Hamburg-based company FreeNow offers a number of services, from taxis and e-scooter rentals to car-sharing. It operates in 150 cities in nine countries across Europe.

Lyft’s acquisition of FreeNow brings with it scope to branch out into major European cities such as Paris, Milan, London and Frankfurt.

Lyft CEO David Risher told Reuters they were entering the European market at “a good price and more importantly, a great time” and said the company was looking strong financially ahead of its future expansion.

According to Lyft, the deal means they have increased their revenue opportunity from around 161 billion personal vehicle trips per year to 300 billion per year.

FreeNow CEO Thomas Zimmermann said: “Almost half of the taxi industry in Europe is still offline. So it's also where a lot of growth potential comes from.”

With its expansion, Lyft will continue to face competition from Uber as well as the Estonian company Bolt Technology who both have a strong presence in Europe.

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