Rabbit, a leading tech-driven, hyperlocal e-commerce company originating from Egypt, has officially announced its market entry into Saudi Arabia. By 2026, the company aims to deliver 20 million items across all major cities in the Kingdom.
Rabbit is already operational in Saudi Arabia, having established its regional headquarters in Riyadh. The company has built a growing local team and has its network of strategically located ‘dark stores’ (fulfillment centers) up and running across key neighborhoods in the capital city. Rabbit secured its commercial license from the Saudi Ministry of Investment in 2022, and its investment in local talent and infrastructure reflects a carefully considered strategy for expansion within the GCC, with Saudi Arabia as its immediate priority.
Saudi Arabia presents an ideal market for Rabbit’s core strengths: speed, convenience, and reliability. The current online grocery penetration in KSA stands at a modest 1.3%, significantly lower than in markets like the UAE (5.3%) and the US (4.8%), indicating substantial growth potential. With a total food and grocery market valued at $60 billion, even a rise to 4% online penetration would translate to a e-grocery market exceeding $2 billion.
Rabbit’s vision aligns seamlessly with the objectives of Saudi Arabia’s Vision 2030, including the development of the retail sector, increasing the economic contributions of SMEs, attracting foreign investment, and fostering the growth of the digital economy.
Leveraging AI-powered recommendations and a rapid 20-minute delivery promise, Rabbit has cultivated a strong and loyal customer base in Egypt. The company’s business model, encompassing groceries, food, and cosmetics, hinges on exceptional operational efficiency, a critical factor in the competitive e-grocery landscape. While quick commerce presents complex logistical challenges globally, Rabbit has demonstrated a track record of refining its balance between logistics, customer satisfaction, and sustainable unit economics.
Rabbit’s expansion into Saudi Arabia follows a period of consistent and profitable growth in its home market of Egypt. Over three and a half years of operation, 1.4 million Egyptian customers have utilized the Rabbit app, resulting in over 40 million delivered items within the promised 20-minute timeframe, and achieving an impressive 8.5x revenue growth in the past two years.
Ahmad Yousry, Co-Founder and CEO of Rabbit, expressed his enthusiasm for the Saudi Arabian launch, stating, “We are delighted to announce Rabbit’s expansion into the Kingdom. We pride ourselves on being a hyperlocal company, bringing our bleeding-edge tech and experience to transform the grocery shopping experience for Saudi households and delivering the best products – especially local favorites- in just 20 minutes. We’re building Rabbit Saudi, for Saudis, by Saudi hands.”
Rabbit operates as a ‘house of brands,’ stocking essential household items and prioritizing local customer favorites. Typically, over 60% of its suppliers are local, and the company’s strategy in Saudi Arabia will focus on empowering local producers and suppliers in its nationwide rollout.
Rabbit’s emphasis on customer experience and robust unit economics underpins its sustainable growth model, reducing reliance on excessive marketing and discounts. This success is enabled by its strong technical infrastructure, including streamlined warehousing with a fully digitized supply chain, a user-friendly app interface, and highly efficient logistics that optimize every step from warehouse picking to customer handoff, measured in seconds.
Rabbit has also recently attracted significant investment from blue-chip investors such as Lorax Capital Partners, Global Ventures, Raed Ventures, and Beltone Venture Capital, adding to its existing strong investor base.
