Rabbit Sprints to Saudi Arabia

A new chapter unfolds for the leading tech-driven, hyperlocal e-commerce company, Rabbit, with its entry into the Saudi market.

Following a strong, profitable growth in Egypt, the company is already live in KSA and has established its regional headquarters in Riyadh.  Its operations are up and running through its network of ‘dark stores’ (fulfillment centers) across key neighborhoods in the city. With this endeavour, Rabbit aims to deliver 20 million items in all of KSA’s major cities by 2026.  

This expansion follows Rabbit’s commercial license from KSA’s Ministry of Investment in 2022. As the region gears towards Saudi Vision 2030, Rabbit’s license from regional HQ is further accompanied by a substantial investment in local talent. In its GCC chapter, the latest expansion positions Rabbit at a strategic advantage, leveraging a carefully planned, pragmatic strategy with Saudi Arabia as the immediate priority.  

For Rabbit, KSA is an ideal market to benefit from the company’s competitive advantages of speed, convenience and reliability. The region’s growth potential is defined by the fact that current online grocery transactions in KSA are at a lower rate (1.3%) than the likes of the UAE (5.3%) and the US (4.8%). On the other hand, KSA’s overall food and grocery market is $60 billion, and a rise to even 4% online penetration yields a >$2 billion e-grocery market. 

The company’s vision harmoniously aligns with the goals of the Kingdom’s Vision 2030 plan, which emphasises the growth of the retail sector, boosts the economic contributions of SMEs, attracts foreign investment, and advances the digital economy.

How Does Rabbit Master Operational Efficiency?

Enhancing operational efficiency continues to be a significant hurdle in the e-grocery sector. Moreover, Rabbit’s innovative business model, which promises delivery of groceries, food, cosmetics, and more within just 20 minutes, necessitates a swift and effective response to these challenges. Using AI-powered recommendations with the convenience of rapid delivery, Rabbit has built a loyal customer base. Its success is dependent on balancing logistics, customer satisfaction, and sustainable unit economics—an equation Rabbit continues to refine. 

Over three and a half years of live operations, which began in Egypt, 1.4 million customers have used Rabbit’s app to have over 40 million items delivered (in 20 minutes or less) – with 8.5x revenue growth in the last two years. 

On the Saudi debut, Ahmad Yousry, Co-Founder and CEO of Rabbit, commented, “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 favourites- in just 20 minutes. We’re building Rabbit Saudi, for Saudis, by Saudi hands.”

Local-First, Tech-Driven Model Powers Sustainable Growth 

Rabbit is a house to many brands stocking domestic necessities and local favourites. Typically, over 60% of suppliers are local, and the company’s strategy will see KSA heroes empowered in the countrywide roll-out. A key differentiating factor for Rabbit in the customer experience domain is that it is not dependent on excessive marketing and/or discounts. Its strong unit economics enables sustainable growth. 

A strong technical infrastructure serves as the backbone of Rabbit’s strategic expansion: (i) Efficient warehousing – a completely digitised supply chain acquiring the correct items in optimal quantities (ii) a customer friendly app interface – appealing display of available inventory, and (iii) highly effective logistics – transporting from point A to point B in the quickest, most economical way. Every aspect, from the initial ‘picking’ in the warehouse to the final ‘handoff’ to the customer, is meticulously timed in seconds.

Additionally, Rabbit has recently strengthened its investor base with the addition of blue-chip backers, including Lorax Capital Partners, Global Ventures, Raed Ventures, and Beltone Venture Capital—joining an existing roster that features Global Founders Capital, Goodwater Capital, Hub71, Simple Capital, and Foundation Ventures.

Key Milestones

• Record-breaking $11M pre-seed funding secured in 2021 from Global Founders Capital, Raed Ventures, and others — the largest of its kind in MEA.
  
• 20-minute delivery promise achieved via full control of the supply chain, from sourcing to doorstep, supported by proprietary tech.
  
• Over 40M items delivered since launch, with 1.4M+ app users and an 8.5x revenue growth in just two years.
  
• AI-powered platform leverages real-time data to optimise inventory, personalise customer experience, and reduce food waste to <1%.
  
• GCC expansion kicks off in KSA, with a regional HQ in Riyadh and a goal of delivering 20M items across major Saudi cities by 2026.