Rabbit, a hyperlocal e-commerce company, is entering the Saudi Arabian market, with a target to deliver 20 million items in all of the country’s major cities by 2026.
Rabbit has already established its regional headquarters in Riyadh and has a growing team based in Saudi Arabia. The e-commerce company’s operations are already underway through its network of fulfillment centres across key neighbourhoods in Riyadh.
Having secured its commercial license from KSA’s Ministry of Investment in 2022, Rabbit’s regional HQ and investment in local talent follows a carefully planned, pragmatic strategy for GCC expansion, with Saudi Arabia as the immediate priority.
Ahmad Yousry, co-founder and CEO of Rabbit
Ahmad Yousry, co-founder and CEO of Rabbit, commented: “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.”
Rabbit says that the Kingdom of Saudi Arabia is an ‘ideal’ market to benefit from its competitive offerings. Current online grocery transactions in KSA are at a lower rate (1.3 per cent) than the likes of the UAE (5.3 per cent) and the US (4.8 per cent) – creating clear growth potential. KSA’s overall food and grocery market is $60billion, and a rise to even four per cent online penetration yields a $2billion e-grocery market.
The company’s vision also aligns closely with objectives of the Kingdom’s Vision 2030 plan, by helping to develop the retail sector, increase SMEs’ economic contributions, attract foreign investment, and develop the digital economy.
AI-powered convenience
By combining AI-powered recommendations with its rapid delivery service, Rabbit has built a loyal customer base. Its business model of delivering groceries, food, cosmetics, and more in just 20 minutes hinges on achieving high levels of operational efficiency — a key challenge in the e-grocery industry.
Quick commerce remains a complex operational challenge worldwide, with success dependent on balancing logistics, customer satisfaction, as well as sustainable unit economics.
Rabbit’s market entry into Saudi Arabia follows consistent, profitable growth in its original market – Egypt. Over three and a half years of live operations, 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.
Rabbit’s focus on customer experience and strong unit economics enables sustainable growth that is not dependent on excessive marketing and/or discounts. Its success is made possible through its technical backbone. Everything from ‘picking’ (in the warehouse) to final ‘handoff’ (to the customer) is measured in seconds.
The post Rabbit Expands Hyperlocal E-Commerce Offering Into Saudi Arabia appeared first on The Fintech Times.
