Egyptian quick commerce (q-commerce) startup Rabbit has officially launched its operations in Saudi Arabia, establishing a regional headquarters in Riyadh as it sets its sights on the Kingdom’s rapidly growing e-grocery sector. Founded in 2021 by Ahmed Yousry, Walid Shabana, Ismail Hafezz, and Tarek El Geresy, Rabbit delivers groceries and everyday essentials in as little as 20 minutes using a network of hyperlocal dark stores. The move is supported by a robust investment round from prominent regional and international backers, reinforcing Rabbit’s ambition to dominate the GCC’s digital retail space.

Strategic Market Entry with Local Investment and Talent

Rabbit’s Saudi launch follows a structured expansion plan that began with securing a commercial license from the Kingdom’s Ministry of Investment in 2022. Now live in Riyadh, the company has hired a growing Saudi team and opened fulfilment centers in key neighborhoods to ensure rapid service and hyperlocal execution. Rabbit’s business model is closely aligned with Saudi Arabia’s Vision 2030 priorities, including expanding the digital economy, enhancing SME contribution, attracting foreign capital, and modernizing the national retail infrastructure.

Tapping into a High-Potential E-Grocery Market

The company sees significant opportunity in Saudi Arabia’s underpenetrated online grocery segment, where digital transactions represent just 1.3% of the $60 billion market—far lower than in the UAE (5.3%) or the US (4.8%). Rabbit projects that even a modest increase in online adoption could create a $2 billion e-grocery market, which it aims to capture with its speed, convenience, and tech-first offering. Its target of delivering 20 million items across major Saudi cities by 2026 reflects confidence in both its model and the region’s readiness for q-commerce transformation.

Operational Efficiency as a Competitive Edge

Rabbit’s value proposition lies in its ability to deliver orders in 20 minutes or less, a feat made possible by its AI-powered platform, streamlined warehousing, and highly efficient logistics system. Every stage of the customer journey—from in-app browsing to picking, packing, and handoff—is optimized and measured in seconds to maintain speed and reliability. With over 60% of suppliers in Saudi Arabia being local, the company is doubling down on becoming a homegrown brand that delivers both quality and cultural relevance.

Strong Financial Backing Fuels Sustainable Growth

Rabbit enters the Saudi market on the back of sustained growth in Egypt, where it has fulfilled over 40 million deliveries to 1.4 million users and recorded an 8.5x revenue increase in just two years. This growth trajectory has attracted fresh funding from prominent regional investors including Lorax Capital Partners, Global Ventures, Raed Ventures, and Beltone Venture Capital, who join earlier backers like Global Founders Capital, Goodwater Capital, Hub71, Simple Capital, and Foundation Ventures. The company’s approach emphasizes sustainable unit economics and organic growth, steering away from discount-heavy models in favor of long-term customer loyalty.

Rabbit’s launch in Saudi Arabia represents a pivotal chapter in its journey to become a leading q-commerce player in the Middle East, driven by a local-first mindset and an efficient, tech-enabled model. By addressing operational complexity with innovation and aligning closely with Saudi Arabia’s national development goals, Rabbit is positioning itself as a strategic enabler in the Kingdom’s evolving retail landscape. As the company scales across Saudi cities, its performance will serve as a bellwether for the viability and future of ultra-fast commerce in the region.