Lyft is making its first move into Europe with the purchase of mobility platform FreeNow, a nearly $200 million deal that signals a major international expansion for the U.S.-based ride-hailing company.

The $198.40 million acquisition from German automakers BMW and Mercedes-Benz will give Lyft access to some of Europe's largest transportation markets, including London, Frankfurt, Paris and Milan.

The deal nearly doubles Lyft's total market by increasing its reach to more than 300 billion personal vehicle trips annually, up from around 161 billion, the company said on Wednesday.

"Almost half of the taxi industry in Europe is still offline. So it's also where a lot of growth potential comes from," said FreeNow CEO Thomas Zimmermann, according to Reuters.

FreeNow, which operates in over 150 cities across nine European countries, offers a range of mobility options — including traditional taxis, e-scooter rentals, and car-sharing services. The company said last year that it had reached break-even status, supported by a 13% rise in revenue and a strategic shift toward its core taxi operations.

Lyft CEO David Risher told Reuters the timing of the acquisition was ideal. "A good price and more importantly, a great time," he said, noting Lyft is in a strong financial position to support the expansion.

The move comes as Lyft seeks growth opportunities outside the U.S., where it faces fierce competition from Uber Technologies in the North American market. By expanding into Europe, Lyft enters a highly competitive landscape already dominated by Uber and Estonia's Bolt Technology.

Both rivals have invested heavily in the region and adapted to the increasingly regulated environment. European policymakers are pushing for better protections for drivers, including guaranteed minimum wages and holiday pay, prompting companies like Bolt to introduce such benefits in the UK.

FreeNow's established footprint in Europe gives Lyft a strategic edge, but the company will still need to navigate local regulations and compete on pricing and service.

The acquisition marks a significant strategic shift for Lyft as it takes on new markets and rival firms on an international stage.