ISTANBUL - Marti Technologies, Inc. (NYSE American: MRT), a prominent urban mobility provider in Türkiye, has reported significant growth in its ride-hailing service, surpassing its mid-year targets. The company announced that as of June 30, 2024, it has exceeded its goal with over 1,100,000 riders and more than 170,000 registered drivers, aiming to further increase these numbers by September 30, 2024.
From December 31, 2023, to June 30, 2024, Marti's ride-hailing riders increased by 121%, while the number of registered drivers grew by 60%. This expansion reflects the high demand for the company's services throughout Türkiye. Marti's business model focuses on providing accessible, safe, and economical transportation options for users and economic opportunities for drivers.
In Istanbul, Türkiye's largest city, Marti has over 141,000 registered drivers, significantly outnumbering the 19,845 taxis operating in the city. Marti ensures rider safety by conducting formal background checks on drivers, who have garnered an average rating of 4.8 out of 5 stars from riders.
Despite this growth, Marti currently does not facilitate online payments through its app or charge a service fee. The company's ambitious targets for the third quarter include reaching over 1,300,000 riders and over 190,000 registered drivers.
Consultancy group McKinsey & Company estimates the taxi market in Türkiye to be valued between $9 billion and $12 billion as of 2021. The consultancy also projects that ride-hailing services could expand the market to $15 billion to $20 billion by 2030 by offering more affordable and convenient transportation options.
Marti, established in 2018, is Türkiye's leading mobility application, providing a range of transport services including car, motorcycle, and taxi rides, as well as a fleet of rental e-mopeds, e-bikes, and e-scooters. The company's services are supported by proprietary software and IoT infrastructure.
In other recent news, Marti Technologies announced a change in its executive team, appointing Oguz Erkan as its new Chief Financial Officer. Erkan, who boasts a 22-year career in finance and strategy, steps into the role following the departure of the company's previous CFO, Cem Yasar Ozey. Erkan's experience includes significant roles at GlaxoSmithKline (NYSE:GSK) and Arçelik-Beko, a global home appliances company.
In addition to the executive shift, Marti Technologies recently updated its unique rider target for mid-2024, raising the goal from 850,000 to 900,000. The company maintains its registered driver target at 155,000. As of April 23, 2024, Marti reported over 788,000 unique riders and more than 145,000 registered drivers, reflecting strong demand for its services in Türkiye.
These developments are part of the company's recent strategic moves. Marti Technologies' CEO, Oguz Alper Oktem, expressed confidence in Erkan's ability to contribute to the company's growth and strategic objectives. McKinsey & Company's projections indicate that ride-hailing could expand the Turkish market to $15 billion to $20 billion by 2030.
InvestingPro Insights
Marti Technologies, Inc. (NYSE American: MRT) has shown a remarkable increase in its customer base, yet the financial health of the company as per the latest data from InvestingPro raises some concerns for investors. The company's market capitalization stands at a modest $96.87 million, reflecting its position as a smaller player in the industry.
One of the key metrics that stands out is the negative price-to-earnings (P/E) ratio, which at -2.93 for the last twelve months as of Q4 2023, indicates that the company is not currently profitable. This aligns with an InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Moreover, the gross profit margin for the same period is notably negative at -19.72%, suggesting that Marti Technologies is struggling to translate sales into gross profit effectively.
Despite these challenges, the company has experienced a strong return over the last three months, with the price total return reaching 106.08%. This could indicate investor optimism or a potential turnaround in the company's fortunes, which may be worth monitoring.
InvestingPro Tips also note that Marti Technologies is quickly burning through cash and may have trouble making interest payments on its debt, which is critical information for investors considering the company's future sustainability and growth prospects.
For those interested in a deeper analysis, InvestingPro offers additional tips on the company's financials and performance. Using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights. With several more tips available on InvestingPro, such as sales decline anticipation and price volatility, investors can make more informed decisions by considering the comprehensive picture provided.
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