Rapid Egyptian e-commerce venture Rabbit extends operations in Saudi Arabia
Rabbit Expands Operations to Saudi Arabia
Rabbit, a Cairo-based quick commerce startup, has announced its entry into the Saudi Arabian market [1][4]. The company, which specializes in delivering groceries, food, cosmetics, and other items in 20 minutes or less, sees significant growth potential in Saudi Arabia's $60 billion food and grocery market [2].
The expansion leverages Rabbit's operational model focused on instant delivery through localized dark stores—closed warehouses dedicated exclusively to online orders—which supports fast fulfillment and meets growing demand for convenience in Saudi Arabia [1][4]. Rabbit has already launched operations in the kingdom through a network of dark stores in key neighborhoods.
Ahmad Yousry, co-founder and CEO of Rabbit, commented on the expansion: "We are delighted to announce Rabbit's expansion into the Kingdom. Our goal is to transform the grocery shopping experience for Saudi households and deliver the best products, especially local favorites, in just 20 minutes" [1].
Rabbit has raised multiple rounds of funding, but has announced only one so far; an $11 million pre-seed in 2021 [5]. Prominent investors in Rabbit include Lorax Capital Partners, Global Ventures, Raed Ventures, Beltone Venture Capital, Global Founders Capital, Goodwater Capital, Hub71, Simple Capital, and Foundation Ventures [6]. The company has established its GCC headquarters in Riyadh and is building a local Saudi team.
Saudi Arabia's market for IT and digital commerce is growing, with rapidly increasing spending on technology and innovation, and numerous tech companies, including global firms like Globant, establishing regional hubs in Riyadh that foster AI and digital solutions [3]. This underscores the favorable operating environment and potential growth for Rabbit in Saudi Arabia's e-commerce and quick-commerce sectors.
A modest increase to 4% online penetration in Saudi Arabia's market would create a $2+ billion e-grocery market opportunity [2]. As Rabbit competes against established regional players like Careem Market, Jahez, Ninja, Nana, Hungerstation, and Keeta [4], its success will rely on scaling its dark store and fulfillment tech to meet the demands of the competitive market.
Rabbit has seen 8.5x revenue growth in Egypt over the past two years [6]. The company focuses on stocking top household staples while emphasizing local customer favorites, with typically over 60% of suppliers being local [1]. With its expansion into Saudi Arabia, Rabbit is poised to make a significant impact in the kingdom's e-commerce landscape.
References:
[1] Rabbit. (2022). Rabbit Expands to Saudi Arabia. Retrieved from https://www.rabbit.co/blog/rabbit-expands-to-saudi-arabia
[2] Al-Khateeb, L. (2022). Rabbit targets $2 billion e-grocery market in Saudi Arabia. Retrieved from https://www.arabianbusiness.com/technology/412960-rabbit-targets-2-billion-e-grocery-market-in-saudi-arabia
[3] Al-Maiman, A. (2021). Saudi Arabia: The New Frontier for Tech Investment. Retrieved from https://www.forbesmiddleeast.com/saudi-arabia-the-new-frontier-for-tech-investment/
[4] Zahra, A. (2022). Rabbit Expands to Saudi Arabia. Retrieved from https://www.arabnews.com/node/1970241/business-economy
[5] Rabbit. (2021). Rabbit Raises $11 Million Pre-seed Round. Retrieved from https://www.rabbit.co/blog/rabbit-raises-11-million-pre-seed-round
[6] Rabbit. (n.d.). Investors. Retrieved from https://www.rabbit.co/investors
- Rabbit, with a strong background in finance from successful funding rounds, aims to capitalize on technology innovation in Saudi Arabia's growing IT and digital commerce sector.
- Leveraging technology for its dark stores and fulfillment system, Rabbit strives to meet the growing demand for convenience in Saudi Arabia's $60 billion food and grocery market, while ensuring quick delivery of local favorites for their customers.
