Cairo-based quick commerce startup Rabbit has officially launched operations in Saudi Arabia, to compete in the largest and one of the most competitive grocery delivery markets in the Middle East & North Africa. The expansion follows the company’s “profitable growth” in Egypt where it has delivered over 40 million items to 1.4 million customers.
The Egyptian startup has established its GCC headquarters in Riyadh and is building a local Saudi team. The company has already launched operations in the city through a network of dark stores (fulfillment centers) in key neighborhoods.
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 favorites, in just 20 minutes. We’re building Rabbit Saudi, for Saudis, by Saudi hands.”
The startup sees significant growth potential in Saudi Arabia’s $60 billion food and grocery market, where online grocery penetration is currently at just 1.3%, compared to 5.3% in UAE and 4.8% in the US. Even a modest increase to 4% online penetration would create a $2+ billion e-grocery market opportunity.
Rabbit’s business model revolves around delivering groceries, food, cosmetics, and other items in 20 minutes or less through a sophisticated technical infrastructure that includes streamlined warehousing, user-friendly app interfaces, and hyper-efficient logistics. The company focuses on stocking top household staples while emphasizing local customer favorites, with typically over 60% of suppliers being local.
The company has seen 8.5x revenue growth in Egypt over the past two years and counts prominent investors including Lorax Capital Partners, Global Ventures, Raed Ventures, Beltone Venture Capital, Global Founders Capital, Goodwater Capital, Hub71, Simple Capital and Foundation Ventures.
It has raised multiple rounds of funding but has announced only one so far; an $11 million pre-seed in 2021.
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