Egypt’s Rabbit Expands to Saudi in Play for $60B Grocery Market
TLDR
- Egypt-born quick commerce (q-commerce) startup Rabbit has extended its services to the Saudi market by establishing a regional HQ in Riyadh
- Rabbit is a tech-driven hyperlocal e-commerce company that delivers groceries and more in as quick as 20 minutes through its network of dark stores
- The startup has been backed by some regional investors, including Lorax Capital Partners, Global Ventures, Raed Ventures, and Beltone Venture Capital, along with the existing investors
Egyptian e-commerce startup Rabbit has launched operations in Saudi Arabia, setting a target to deliver 20 million items across major cities by 2026. The company has established its regional headquarters in Riyadh and is already operational through a network of dark stores in key neighborhoods.
Rabbit’s entry follows the receipt of a commercial license from Saudi Arabia’s Ministry of Investment in 2022. Its hyperlocal strategy is designed to align with Vision 2030 goals, including SME development, digital transformation, and foreign investment.
Saudi Arabia’s $60 billion grocery market has an online penetration rate of just 1.3%, compared to 5.3% in the UAE. Rabbit aims to capture a share of the >$2 billion potential market if penetration rises to 4%. The company has delivered over 40 million items in Egypt and posted 8.5x revenue growth in two years. Rabbit is backed by investors including Lorax Capital, Global Ventures, and Raed Ventures.
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Key Takeaways
Rabbit’s expansion into Saudi Arabia marks a strategic move into a large but underpenetrated e-grocery market. While the Kingdom’s online grocery adoption remains low, its growing digital infrastructure, consumer base, and Vision 2030 reforms offer strong upside for scalable e-commerce models. Rabbit’s tech-driven, 20-minute delivery model, built on dark stores and AI-powered inventory systems, offers speed and reliability—key differentiators in the quick commerce space. Unlike other players relying heavily on discounting, Rabbit emphasizes operational efficiency and local supplier integration to drive sustainable unit economics. The company’s track record in Egypt and backing from prominent regional investors position it well for regional scale. With over 60% of its suppliers sourced locally, Rabbit is also aligning with government goals to boost SME participation and local job creation. As Saudi consumers demand faster, digital-first retail options, Rabbit is betting that its hyperlocal approach can transform everyday purchasing habits in one of the Middle East’s most promising retail markets.
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