Lyft completes acquisition of FreeNow
The former Mercedes/BMW-owned brand now officially operates under the name of ‘FreeNow by Lyft’ – something already present in marketing materials, with the red FreeNow logo being complemented by small lettering in Lyft pink. With the acquisition, it also means Lyft is now active in Europe and has expanded to nine European markets in one fell swoop.
In its latest announcement, Lyft reiterated its goals for the acquisition, some of which it shared back in April. The addition of FreeNow’s areas of operation means Lyft’s addressable market will grow to “over 300 billion private vehicle trips per year”; the two providers will combine their strengths, “united by shared values and an uncompromising focus on the customer.”
Both teams will work closely together, with FreeNow CEO Thomas Zimmermann and his management team now reporting to Jeremy Bird, Lyft’s Executive Vice President of Driver Experience. The existing country general managers of FreeNow will continue to maintain strategic responsibility for their markets, such as in Ireland, the UK, Germany, Greece, Spain, Italy, Poland, France and Austria. In a statement, Bird said: “Our integration approach centers on respecting what makes FREENOW successful – the talented team, unique needs of each local market, and the relationships with fleet owners, taxi drivers, and riders across the continent. By leveraging and building on these strengths, we’re laying the foundation for long-term and sustainable growth and better experiences for drivers and riders alike.”
When it comes to drivers, Lyft states that they can now expect more rides as Lyft users from North America now have “a preferred app in Europe” – and vice versa. Addressing the taxi sector, where FreeNow maintains a strong presence, Lyft also writes that it is committed to “expanding FreeNow’s leading role in the taxi sector – based on decades of trusting partnerships with over 150,000 drivers, as well as with authorities, cities, unions and fleet operators.” Lyft’s urban bikesharing scheme will also be covered by the integration.
Incidentally, the company is offering 50 per cent discounts to passengers on the first ride they take with the ‘other’ app. So if a Lyft user from North America travels to Europe, they will receive a discount on their first ride with FreeNow; when FreeNow users open the app in the US or Canada, they will be prompted to download the Lyft app; and vice versa. The firm states that a seamless transition between the two services should be possible ‘soon’.
Lyft CEO David Risher commented: “Every conversation I’ve had with FREENOW drivers and team members has reminded me why we’re joining forces: to bring the best of each company to the other. This isn’t just about growing our business. It’s about service and connecting people worldwide.”
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