Cairo-based quick commerce startup Rabbit has made a strong entrance into Riyadh, Saudi Arabia, building a dark store network covering half the city within six weeks of its early 2024 launch. The company plans further expansion across Saudi cities over the next two years, targeting 20 million item deliveries by 2026.
Early results reveal Riyadh’s weekly reorder rates on par with Egypt, where Rabbit has served 1.4 million users with over 40 million deliveries. Rabbit prioritizes hyper-localization by sourcing a majority of products locally—over 60% in Egypt—and aims to exceed this in Saudi Arabia by promoting Saudi brands. The company also employs AI-driven solutions for inventory management, logistics, and personalized shopping experiences tailored to the mobile-first Saudi consumer base.
Saudi Arabia’s online grocery market, currently at just 1.3% penetration of the $60 billion food sector, offers vast untapped potential. Projections estimate the Saudi Q-commerce market will grow from $448 million in 2024 to $2.35 billion by 2033, supported by near-universal internet penetration and a tech-savvy population with 90% of shoppers using smartphones.
Rabbit’s localized approach acknowledges distinct consumer behaviors: Saudi shoppers favor occasion-driven purchases versus Egypt’s daily need-based patterns, requiring tailored inventories and marketing. The company’s city-focused expansion prioritizes urban centers like Riyadh and Jeddah, which account for 70% of online grocery transactions.
Technology is central to Rabbit’s competitive edge. Their proprietary AI and machine-learning tools optimize inventory and offer personalized product recommendations. Effective logistics management tackles local delivery challenges, including reliance on landmarks instead of formal addresses, using advanced GPS solutions akin to those deployed by players like Fetchr.
With intense competition from regional players like Jahez and new entrants such as Meituan’s Keeta, Rabbit emphasizes operational excellence, aiming for 94% on-time delivery within 20 minutes through efficient dark store networks. As Saudi Arabia’s quick commerce market matures, Rabbit’s blend of technology and hyper-local strategy positions it as a formidable player poised for sustainable growth.
