Lyft, to buy a taxi application for free for $ 200 million to develop into Europe

US Heling companies Lyft On Wednesday, he announced that he was buying a European taxi application for free in a contract by 175 million euros (199 million dollars).

The company stated that the takeover – the first Lyft in Europe – is to be closed in the second half of 2025, and after merger, both companies will serve over 50 million users in total.

Founded in 2009 as mytaxi, Free Now is a riding platform based in Hamburg, Germany. The company is jointly owned by the German automotive Giants BMW and Mercedes-Benz since 2019.

The application is available in over 150 cities in nine countries, including Ireland, Great Britain, Germany and France. In addition to traditional taxi and driving services, Free now offers other mobility options, including e-scooter, e-moped and e-verse.

The startup is positive from earnings based on profits before interest, debt and depreciation, generating gross reservations over EUR 1 billion in 2024, according to the company’s information sheet.

Acquiring for free now Da Lyft a route to extend to a highly competitive European market, where it will be contrary to such as UberBolt Estonia and Israel.

David Risher, general director of Lyft, told CNBC that the company is only now entering in Europe because it saw the opportunity to expand after constantly improving the service in North America.

Noticing that Thursday will have its two -year anniversary as the general director of Lyft, Risher said: “When I started, unfortunately, we lost their participation, we lost money. We did not do so great for riders or drivers.”

“Now we receive about a minute faster, the cancellation of the driver has fallen to less than 5%, drivers earn billions of dollars on the platform. And our operation in Canada doubled this year.”

He added: “Looking at a strong level of services, looking at the fact that on the international arena, in Canada, we are doing quite well. Now we said:” You know what, now is time? “

The closest national rival of Lyft, Uber, has a long advantage in the company, for the first time began in Great Britain in 2012. Since then, it has been harassed by a series of regulatory problems.

London transport organs tried to prohibit Uber twice as to security related problems. The company finally received a new license to continue operating in the city in 2022.