Egypt's Q-Commerce Startup Rabbit Expands into Saudi Arabia with Riyadh HQ
Egypt-born quick commerce (q-commerce) unicorn Rabbit has officially entered the Saudi Arabian market, establishing a regional headquarters in Riyadh and launching operations. Backed by prominent regional and international investors, the move marks a significant step in Rabbit's GCC expansion strategy, targeting the Kingdom's large and growing online grocery market.
Egypt's Q-Commerce Leader Eyes Saudi Growth
Founded in 2021, Rabbit quickly scaled in Egypt with its promise of delivering groceries, food, cosmetics, and other essentials within 20 minutes using a network of strategically located 'dark stores' (fulfilment centers). The company leverages technology extensively for streamlined warehousing, inventory management, a user-friendly app with AI recommendations, and hyper-efficient logistics. Saudi Arabia presents a major growth opportunity, with current online grocery penetration significantly lower than in markets like the UAE or US, indicating substantial untapped potential.
Strategic KSA Launch Details
Rabbit's entry into Saudi Arabia appears well-planned:
Riyadh HQ: The company has established its regional headquarters in Riyadh and is building a local Saudi team.
Operations Live: Services are already operational through dark stores in key Riyadh neighborhoods.
Licensed: Rabbit secured its commercial license from KSA's Ministry of Investment back in 2022.
Ambitious Target: Aims to deliver 20 million items across KSA's major cities by 2026.
Local Focus: Plans to stock local Saudi favorite brands and source over 60% of supplies locally.
This expansion aligns with Saudi Arabia's Vision 2030 goals related to retail sector development, SME contribution, foreign investment, and the digital economy.
Backed by Regional & Global Investors
Rabbit highlighted recent backing from key regional investors including Lorax Capital Partners, Global Ventures, Raed Ventures, and Beltone Venture Capital. These join existing prominent investors such as Global Founders Capital (GFC), Goodwater Capital, Hub71, Simple Capital, and Foundation Ventures, demonstrating strong continued investor confidence in Rabbit's model and expansion plans.
About Rabbit
Rabbit is a tech-driven, hyperlocal e-commerce (quick commerce) company founded in Egypt in 2021 by Ahmed Yousry, Walid Shabana, Ismail Hafezz, and Tarek El Geresy. It specializes in ultra-fast delivery (around 20 minutes) of groceries, food, and other essentials from its network of dark stores. The company reports having served 1.4 million customers and delivered over 40 million items since its launch, experiencing significant revenue growth.
Looking Ahead
Rabbit enters a competitive Saudi q-commerce market but brings substantial experience and strong backing. Its success will hinge on replicating its operational efficiency – a key challenge in the rapid delivery sector – within the Saudi context. The focus on local suppliers and building a local team are positive steps. Rabbit's expansion is set to intensify competition and potentially accelerate the adoption of quick commerce among Saudi consumers.
Source: Wamda