Lyft wants to enter Europe and has begun to move. The company has notified the National Commission of Markets and the Competition the purchase of Freeow, the taxi app that until now shared BMW and Mercedes-Benz. The operation, valued at 175 million euros represents a key movement: if completed, it will allow Lyft to deploy in more than 150 European cities, including Madrid, Berlin and London.
Instead of building a network in Europe, it is committed to acquiring a platform that already operates in some of the most important markets on the continent. Freeow not only has a consolidated presence in key cities: it also has local agreements, active fleets and an approach that fits the European ecosystem, more regulated than the American. The operation would allow Lyft to enter with a base already made.
The operation is not closed. On July 9, Lyft officially notified the purchase from the National Commission of Markets and Competition (CNMC). With that step the initial phase of the regulatory process in Spain is activated: the agency now has a month to pronounce. If you consider that the operation needs a more detailed analysis, a second phase will be opened that could be lengthened between three and four months, as Europa Press collects. Only after overcoming this process the transaction could be completed.
For users, nothing changes for now. But there are clear promises. Both Lyft and Freeow have confirmed that, for the moment, there will be no changes in the experience of use. The app will continue to function as until now. However, in the medium term, improvements such as more consistent prices, faster vehicles and new functions are expected. They are future objectives, even without a concrete date, but that are already in the road map of both companies.
The Integration of Freeow would allow him to significantly expand his scope, both in number of cities and in potential volume of users. According to its internal estimates, the total market to which it aspires would reach more than 300,000 million annual journeys, with an expected increase in gross reserves of 1,000 million euros.
Freeow does not disappear: he maintains his team, his brand and his local DNA. The agreement contemplates that Freeow retains its current structure. There will be no mergers or rebranding: the brand will remain active and directed by the same team. That continuity is part of the strategic value of the operation, since it allows Lyft to access a consolidated network without altering its internal operation.
An agreement that meets two different, but complementary cultures. Lyft arrives with an experience focused on digital platforms and large volume management. Freeow brings the knowledge of the land: relations with fleets, authorities and operators in each city. Both companies assure that it is not an absorption, but a collaboration that aspires to climb what already works, without losing local identity.
Images | Lyft/Freeow
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