Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 119

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 5
Chunk 119
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 Additionally, revenue generation in 2023 was impacted by the twin earthquakes centered at southeastern Türkiye
over eleven provinces, spreading across an area of almost 110,000 square kilometers in February 6, 2023. While our fleet was not damaged,
we relocated the vehicles in the regions affected by the earthquake to unaffected regions and the vehicles were not available for use
during this phase.

The number of average daily vehicles deployed
increased from 33.0 thousand to 34.6 thousand, or 4.8%, during the period, through a combination of deploying 4 thousand new e-mopeds
and ensuring that a greater share of our fleet is available for rent on the field on a daily basis. While increasing our availability,
we also took several profitability enhancing measures, ceasing operations in lower performing cities and reallocating vehicles to higher
performing cities. The positive revenue effect of the increased number of deployed vehicles to higher performing cities was $5.8 million.
TL price increases in excess of currency depreciation relative to USD and inflation had a positive revenue effect $16.2 million by increasing
average revenue per ride. The price increases reduced average daily rides per vehicle from 2.36 to 1.27, creating a negative revenue effect
of $17.7 million. Lower ride durations produced a further negative revenue effect of $5.1 million. Foreign exchange rates produced a $4.0
million negative revenue effect.

Cost of Revenues

Our cost of revenues decreased by $3.0 million,
or 11.1%, from $27.1 million during the year ended December 31, 2022 to $24.1 million during the year ended December 31, 2023, primarily
attributable to the decreased personnel expenses and operating lease expenses.

Our personnel expenses decreased by $1.4
million, or 18.4%, from $7.7 million during the year ended December 31, 2022 to $6.3 million for the year ended December 31, 2023,
primarily attributable to decreased average number of blue-collar employees from 829 in 2022 to 625 in 2023, or 24.6%. Our operating
lease expense decreased by $1.2 million, or 34.8%, from $3.4 million during the year ended December 31, 2022 to $2.2 million for the
year ended December 31, 2023, as a result of ce