Egypt-born e-commerce platform Rabbit officially launched operations in Saudi Arabia, establishing its regional headquarters in Riyadh, according to a press release (pdf). The company is targeting 20 mn items delivered across major cities by 2026.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

For Saudis, by Saudis: The company aims “to transform the grocery shopping experience for Saudi households,” co-founder and CEO Ahmed Yousry told EnterpriseAM, emphasizing that priority will be given to local suppliers and talent to develop an experience customized to Saudi needs.

Why Saudi Arabia? Rabbit sees the Kingdom as a prime location for expansion, as local online grocery sales are currently at a low of 1.3%, compared to 5.3% in the UAE and 4.8% in the US. Moreover, the company aims to replicate in the Kingdom the experience it had in Egypt, where it achieved 8.5x revenue growth over two years and delivered over 40 mn items to 1.4 mn customers in three and a half years.

One key trend is the growing use of motorcycles for deliveries in the kingdom, a shift from the traditional car-based model, Yousry told us. While some areas pose logistical challenges, the market is better structured overall than others the company has operated in before.

ICYMI- Rabbit secured its license to operate in Saudi Arabia from the Investment Ministry backin 2022 and currently operates fulfillment centers in selected neighborhoods across Riyadh, storing and delivering a wide variety of local and international products.

Future plans: Rabbit already covers 50% of Riyadh and plans to expand citywide before moving beyond the capital city, Yousry told us. The company is also looking to expand to other markets across the GCC and Africa in the not-so-distant future.

About Rabbit: The Cairo-born company was founded in 2021 by Ahmad Yousry (LinkedIn), Ismail Hafez (LinkedIn), Tarek El Geresy (LinkedIn), and Walid Shabana (LinkedIn), promising to deliver products in as little as 20 minutes through its network of dark stores. Along the way, the food delivery company’s growth attracted investors such as Lorax Capital Partners, Global Ventures, and Raed Ventures.

Tags: