Riding-hailing company Lyft Inc., the largest rival to Uber Technologies Inc. in the U.S. market, is expanding into Europe with an announcement today that it will acquire multi-mobility app FreeNow for $197 million in cash.

With its roots tracing back to a service called mytaxi that launched in 2009, FreeNow covers nine European countries and over 150 cities. The company’s platform provides users with access to various transportation options, including taxis, private hire vehicles, cars haring, car rentals, e-scooters, e-bikes, e-mopeds and public transport, all from within a single application.

FreeNow’s core offering is ride hailing and taxi services, with taxi-like services accounting for about 90% of the company’s gross bookings, not dissimilar to Lyft.

The company’s services cater to individual riders and businesses. For individual users, the FreeNow app simplifies city travel by providing various transport options at their fingertips. For businesses, FreeNow offers solutions that streamline employee and client transportation, with more than 15,000 companies choosing it as their primary mobility solution across Europe.

FreeNow provides services in Ireland, the U.K., Germany, Greece, Spain, Italy, Poland, France and Austria.

Lyft is buying FreeNow from the BMW Group and Mercedes-Benz Mobility, which have jointly owned the company now known as FreeNow since 2019, after the two companies announced a €1 billion ($1.14 billion) joint venture to combine their mobility services.

The constituent companies of FreeNow include Intelligent Apps GmbH, mytaxi Austria GmbH, mytaxi Network Ireland Ltd, mytaxi Italia Sr, mytaxi Polska Sp.z.o.o, FREE NOW Portugal Unipessoal Lda, mytaxi Iberia S.L., Clever Tech Srl, Transcovo SAS, Transopco France SAS and Transopco UK Ltd.

Lyft sees the acquisition as a way to immediately fuel its growth strategy, unlock potential for partners and level up the experience for drivers and riders alike. Once completed, the acquisition will nearly double Lyft’s total addressable market to more than 300 billion personal vehicle trips per year and increase gross bookings by approximately €1 billion ($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,” Lyft Chief Executive David Risher said in a media release. “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.”

The deal is expected to close in the second half of this year, subject to customary closing conditions.

Photo: FreeNow