Company: MRT
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036882
Chunk: 27

Company: Marti Technologies, Inc.
Filing Date: 2025-04-29
Form: 20-F
Item: Item 3
Chunk 27
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. In addition, a labor dispute involving
drivers may harm our reputation, disrupt our operations, reduce our future net revenues, and increase the resolution costs of labor disputes.

Furthermore, due to the competition for
attracting and onboarding drivers, which might be intense, we may not employ adequate drivers currently using our platform to meet
the rider demand. Even if we manage to retain drivers initially, drivers might change their platform easily, slowing down our
long-term growth. Additionally, any such reclassification would require us to fundamentally change our business model, consequently
having an adverse effect on our business, results of operations, financial position, and cash flows.

In addition to the risks of incurring significant
additional expenses for compensating drivers, including expenses related to wages (including minimum wage, overtime, and meal and rest
period requirements), employee benefits, social security contributions, taxes (direct and indirect), and potential penalties, the expenses
tied to defending, settling, or resolving ongoing and future legal disputes (including arbitration demands) may be significant for our
business which could adversely affect the value of our business and could have a material adverse effect on our business, results of operations,
and prospects.

The ride-hailing and shared mobility industries
are highly competitive, with low barriers to entry for both local and global, including well-capitalized competitors offering low-cost
alternatives and minimal switching costs. Our inability to compete effectively could significantly diminish the value of our business
and have a material adverse effect on our business, results of operations, and prospects.

We offer multiple transportation services to our riders, including a ride-hailing service that matches riders with car, motorcycle, and taxi drivers. While we currently
face significant competition in the taxi-hailing service, we might face increasing competition in car-hailing and motorcycle-hailing services
in the future. Given the low switching costs for both drivers and riders, as well as the low entry barriers in the market, we can expect
global and local competitors to focus on marketing and software system investments in Türkiye.

We compete against personal car and motorcycle
ownership, which constitutes a significant portion of the total passenger market, especially in cities with widespread geography and insufficient
or inconvenient transportation services. Public transportation also serves as a competitor, offering a low-cost and sometimes faster travel
option. Taxicabs and taxi-hailing services are also our competitors, boasting years of experience in the sector and well-capitalized company
structures. Furthermore, we might anticipate the entry of other global players into the market