Lyft, a US ride-sharing serviceLyft has officially completed the acquisition of Freenow, a European app-based ride-hailing service provider, for approximately US$1.97 million (approximately NT$63 billion). This move also marks the first time that Lyft has expanded its service footprint beyond the North American market, launching a broader global competition with Uber.
Lyft's acquisition of Freenow is the result of an agreement with BMW, Freenow's parent company, and Mercedes-Benz. The acquisition, announced in April, has now received regulatory approval, effectively giving Lyft full operational control of Freenow.
New battlefield in the European market: Dual App interoperability and integration
Bloomberg NewsLyft stated that after the acquisition, Freenow will maintain its original brand and operating model, with no significant changes expected in the near term. However, the two companies will begin integrating their apps. Users will be able to book Freenow rides within the Lyft app, or use Lyft's ride-hailing features through Freenow. When traveling in the US or Canada, the Freenow app will prompt users to download the Lyft app. Lyft users visiting Europe will be able to request rides through the Freenow platform.
This interoperability and integration means that in the future, users will be able to smoothly take ride-hailing services in different markets without having to switch apps, improving the convenience and user experience of cross-border travel.
Staff and current operations remain unchanged
Freenow currently has approximately 600 employees in Europe. Lyft stated that the acquisition will not affect their employment, and no layoffs are planned. Furthermore, Freenow will retain its operational autonomy and continue to provide services in 9 cities across nine European countries, including Germany, Spain, and France.
Although approximately 50% of ride-hailing orders in Europe are still conducted offline, both Lyft and Freenow believe that the market's acceptance of online operations is increasing year by year, which means there is an opportunity to transform into an app-based mobile platform in the future.
Orders still mainly come from taxi services
Unlike most ride-sharing platforms that primarily rely on self-owned or privately owned vehicles, Freenow's operations still primarily rely on a traditional taxi fleet. According to Freenow's previously announced 2024 revenue figures, taxi services accounted for 9% of its revenue and will remain the mainstay of its business model.
Lyft said that in addition to integrating resources, the two parties will work together to launch more innovative services, such as more consistent billing standards, faster ride-hailing matching speeds, and new features introduced in response to market demand, thereby improving the riding experience and market competitiveness.
Future layout of autonomous driving
Lyft has been actively promoting the application of autonomous driving technology in recent years, collaborating with Mobileye, Intel's self-driving technology subsidiary, and other industry partners. The company plans to gradually introduce autonomous vehicles into its North American fleet starting in 2025. If this technology is successfully expanded to Europe in the future, it could further impact Freenow's operating model and fleet structure.
For Lyft, the acquisition of Freenow represents not only an asset expansion but also a significant milestone in its global expansion. Facing Uber's long-standing dominance in the global ride-sharing market, Lyft is poised to gain new traction internationally by integrating local operators, expanding its service coverage, and improving the international user experience, ultimately solidifying its position in the future of autonomous driving and smart transportation.
