Investing.com -- Shares of ride-hailing company Lyft (NASDAQ: LYFT ) increased by 2.4% to $11.2 in premarket trading.

The increase comes as Lyft plans to acquire mobility platform FreeNow from German automotive heavyweights BMW (ETR: BMWG ) and Mercedes-Benz (OTC: MBGAF ).

The acquisition, costing 175 million euros ($198.40 million), is part of Lyft’s broader strategy to expand into the European ride-hailing market.

The deal is expected to nearly double Lyft’s potential market, giving the American firm a significant foothold in major European cities.

The acquisition of FreeNow, a platform that facilitates mobility services, is seen as a strategic move to enhance Lyft’s global presence and diversify its operations.

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