FreeNow breaks even and grows revenue on European expansion

German-owned ride-hailing app FreeNow, achieved break-even in the financial year to August 2024, backed by a 13% revenue growth driven by its strategic focus on the taxi sector.

FreeNow operates in a number of European countries including Germany, UK, Ireland, France, Spain, Poland, Italy, Greece and Austria. Its main focus is taxi services, though it offers other mobility options via its app, including e-bikes, e-scooters, car-sharing and car rental.

CEO Thomas Zimmermann said: “We are convinced that taxis are vital to every city’s mobility ecosystem. Our commitment to working with local taxi drivers and operators is the right approach for sustainable growth and success on both sides. Achieving break-even is a first substantial step and proves the efficacy of our taxi-first strategy. We are dedicated to our vision, prioritising growth and sustained profitability in Europe.”

FreeNow operates in 150 European cities, partners closely with local taxi operators and more than 150,000 drivers. In London, its main focus is on black cabs, though it does offer a private hire service too.

In Germany, FreeNow, which is jointly owned by Daimler and BMW, experienced increased demand for taxi services, driven fixed-price offerings in cities such as Berlin, where taxi demand increased by over 50% on rides serviced by FreeNow year on year.

Its German fleet expanded, with moves into new cities including as Nuremberg, Freiburg and Heidelberg. FreeNow has more than 20,000 taxis now operating in the country and the number of active drivers grew by more than 10%.

Recent initiatives include Ireland’s Airport Pre-book Promise, offering more confidence for airport trips, as well as supporting London’s black cabs’ EV transition, with 70% of trips in the UK capital now done with zero-emission capable vehicles.

In Spain, FreeNow has expanded to cities such as Granada and Valladolid, and has introduced fixed-price fares in Madrid, Barcelona, and Granada.

Zimmermann said: “Our near-term strategy for FreeNow is to strengthen our position as the go-to taxi app in our leading markets, while aiming to achieve this status in all our operating regions and expand into more European cities.”

“We will also continue the modernisation of the taxi sector, by building partnerships with offline dispatchers and offering our online solutions to digitise their business. “The offline taxi market is huge and FreeNow is well positioned to capture its still untapped potential.”