Marty Technologies (MRT) Q1 2025: Ride-Hailing Riders Surge 107% as City Expansion Accelerates

2025-09-22 | By EarningsIQ Research

Marty Technologies delivered a pivotal first half, with ride-hailing riders up 107% year over year, driven by aggressive expansion into six new Turkish cities and app redesigns that improved conversion and engagement. Management’s deliberate tradeoff between rapid scale and near-term profitability, supported by a newly fortified balance sheet, signals a clear intent to entrench market leadership before pushing monetization. Investors should expect continued capital-light growth and measured take rate increases as Marty targets Turkey’s $3 billion ride-hailing opportunity.

Summary

• Ride-Hailing Scale Gains: Unique ride-hailing riders and registered drivers nearly doubled, fueled by new city launches and app improvements.
• Capital Efficiency Focus: Cost discipline and limited incentives underpin rapid growth without significant cash burn.
• Monetization Levers Intact: Management maintains low take rates to maximize share, preserving future pricing power.

Performance Analysis

Marty Technologies’ first half of 2025 was defined by aggressive ride-hailing expansion and disciplined operational execution. Total rides jumped to 19.2 million from 13.7 million a year ago, with ride-hailing the primary growth engine. Unique ride-hailing riders soared 107% year over year to 2.3 million, and registered drivers grew 92% to 327,000, reflecting both geographic expansion and strong network effects. The company’s revenue rose 70% to $14.3 million, driven by the October 2024 monetization of ride-hailing and continued dynamic pricing.

Profitability metrics also improved on the back of efficiency initiatives. Cost of revenues declined 25% as Marty shifted field resources toward higher-margin ride-hailing and trimmed its two-wheeled electric vehicle fleet. Gross margin expanded by 49%, and adjusted EBITDA losses narrowed by $5.4 million. General and administrative expenses rose, largely due to share-based compensation and strategic hiring for the expanding ride-hailing team. Notably, the company’s core four cities are already contribution margin positive, even at current low take rates.

• App Redesign Drives Engagement: Conversion rate improved by 2%, and weekly/monthly active users increased 16% and 12% respectively after the app overhaul.
• Multimodal Synergy: Over 80% of e-moped and motorcycle-hailing riders use other Marty services, boosting cross-sell and LTV.
• Cost Rationalization: Two-wheeled fleet decommissioning and repair/logistics optimization reduced operating costs and freed capital for ride-hailing.

With ride-hailing now representing the clear strategic core, Marty’s ability to scale with capital efficiency and minimal rider/driver incentives stands out in a global context.

Executive Commentary

Strategic Positioning

1. Ride-Hailing as the Growth Engine

Marty’s business model has decisively shifted from two-wheeled electric vehicle rentals to ride-hailing marketplace dominance. The company is now present in 10 major Turkish cities, covering half the country’s population and two-thirds of GDP. Management is prioritizing user growth and market share, intentionally keeping take rates in the high single digits—well below global benchmarks—to maximize adoption and entrench its lead before ramping monetization.

2. Multimodal Platform Advantage

The integrated super app strategy—combining car, motorcycle, taxi hailing, and e-vehicle rentals—creates a powerful user acquisition and retention flywheel. Data shows a majority of users cross-utilize services, with multimodal riders delivering three times the rides and nearly triple the revenue per user compared to single-service users. This cross-pollination reduces acquisition costs and increases lifetime value, reinforcing Marty’s moat against single-modality competitors.

3. Operational Efficiency and Cost Control

Efficiency initiatives, including fleet downsizing and increased on-field repairs, have sharply reduced cost of revenues and improved gross margins. The company’s ability to scale ride-hailing with limited capital outlay and minimal incentive spend is rare among global peers, especially given Turkey’s lower purchasing power. Marty’s lean approach enables continued investment in growth without near-term funding pressure.

4. Technology and AI Investments

AI engineering is a strategic focus, with new teams optimizing pricing, matching, and user experience. Advanced pricing and take rate management tools are being built to support future monetization. Marty is leveraging local and international AI talent to match global standards, ensuring the platform remains competitive and scalable as demand grows.

5. Capital Structure and Treasury Strategy

Recent $23 million convertible note financing fully funds Marty’s growth plans through 2026. The company’s crypto treasury policy is conservative, diversifying only a fraction of non-operating cash into Bitcoin as a store of value, while the majority remains in USD. Management has no near-term plans for further capital raises, relying instead on operational cash flow improvements and take rate flexibility.

Key Considerations

Marty’s first half was marked by strategic execution across growth, efficiency, and technology, but the company’s next phase will depend on disciplined monetization and competitive vigilance as Turkey’s mobility market matures.

Key Considerations:

• Take Rate Upside: Current high single-digit take rates leave substantial room for future revenue expansion as competitive pressure remains low.
• City Expansion Dynamics: New markets outside Istanbul now account for nearly a quarter of riders and drivers, and are expected to drive the next leg of growth.
• Minimal Incentive Spend: Marty’s ability to scale with negligible driver and rider incentives is a structural advantage versus global ride-hailing peers.
• Regulatory Agility: Local market knowledge and regulatory relationships are key to sustaining leadership as new modalities and cities come online.
• Autonomous Vehicle Readiness: While Turkey’s economics delay AV adoption, Marty is positioning to be an early mover as conditions evolve.

Risks

Key risks include potential regulatory shifts as ride-hailing scales, the threat of new entrants or global players targeting Turkey, and macroeconomic volatility impacting consumer demand or cost structure. While Marty’s capital position is solid, future profitability depends on disciplined take rate management and the ability to sustain low incentive costs as competition intensifies. Currency risk and the evolving regulatory environment remain ongoing watchpoints.

Forward Outlook

For the remainder of 2025, Marty guided to:

• Annual revenue approaching $34 million, nearly doubling from 2024.
• Adjusted EBITDA improvement of $2.3 million versus prior year.

For full-year 2025, management maintained guidance, incorporating:

• Expansion into six new cities and continued ride-hailing team growth.

Management highlighted several factors that will shape the outlook:

• Continued prioritization of growth over near-term margin in new cities.
• Flexibility to increase take rates and profitability as market matures and competition remains limited.

Takeaways

Marty Technologies is executing a classic land-grab in Turkish mobility, using product, operational, and capital discipline to build a defensible leadership position before pulling monetization levers.

• Ride-Hailing Scale: Aggressive city launches and app improvements have doubled the user and driver base, laying the groundwork for future revenue gains.
• Profitability Levers: Efficiency projects and capital-light growth are narrowing losses, while core markets are already contribution margin positive.
• Future Watch: Investors should monitor take rate evolution, new city adoption curves, and early signals of competitive entry or regulatory change.

Conclusion

Marty’s Q1 2025 results demonstrate a company in rapid expansion mode, balancing disciplined cost management with deliberate under-monetization to maximize long-term share. With a strong balance sheet and proven execution, Marty is positioned to capture a significant share of Turkey’s evolving mobility market, but the next phase will test its ability to transition from scale to sustainable profitability.

Industry Read-Through

Marty’s playbook offers a template for mobility super apps in emerging markets, where local players with regulatory agility, multimodal integration, and capital-light growth can outpace global incumbents. The Turkish market’s rapid adoption of tech-enabled mobility and low incentive costs highlight unique structural advantages compared to more mature markets. For global ride-hailing and micromobility firms, Marty’s results reinforce the importance of tailored local execution, measured monetization, and cross-modal synergies as the industry’s next growth frontier shifts to underpenetrated urban regions.

MRT Technology Mobility Ride-hailing Super app Urban transport Turkey