Rabbit Leapfrogs into Saudi Arabia with Ambitious 20-Minute Delivery Pledge

Rabbit, the Cairo-based quick commerce sensation, has certainly wasted no time making itself at home in Saudi Arabia. Just six weeks after launching in early 2024, it has already set up a robust network of dark stores covering half of Riyadh. That’s a pretty impressive milestone by anyone’s standards.

But this is just the beginning for Rabbit in the Kingdom. Their ambitious two-year plan involves expanding across other major Saudi cities, aiming to deliver a mighty 20 million items by 2026. Judging from initial figures, they’re on to a winner—Riyadh’s customer reorder rates have quickly matched those seen back in Egypt, Rabbit’s original stomping ground, where they've already served around 1.4 million customers and clocked up more than 40 million deliveries.

What really makes Rabbit tick? It appears to be their knack for hyper-localisation. Over 60% of their stock in Egypt comes from local suppliers, and they’re keen to exceed this number by championing Saudi brands. It's all about getting to grips with the Saudi market’s varied shopping habits—quite different from the daily need-based consumer patterns Rabbit encountered in Egypt. Saudis tend to go in for occasion-driven buys, leading Rabbit to carefully adapt their inventory and marketing strategy.

Armed with sophisticated artificial intelligence tools for managing their inventary and logistics, these guys are all about being tech-savvy. This helps them create personalised shopping experiences designed specifically for Saudi Arabia’s predominantly mobile-first buyers—after all, with about 90% of locals using smartphones, you can't afford to overlook digital convenience.

Looking ahead, there’s plenty of demand to tap into. Although Saudi Arabia’s online grocery sector currently accounts for a slender 1.3% of its $60 billion food market, it's expected to balloon from $448 million in 2024 to a hefty $2.35 billion by 2033. Why the optimistic forecast? Well, that near-universal internet access paired with a rapidly growing young, tech-savvy population certainly doesn't hurt.

Rabbit's city-focused strategy prioritises key urban hubs such as Riyadh and Jeddah, which make up roughly 70% of online grocery purchases. They've invested heavily in smart GPS systems similar to those used by delivery pros like Fetchr—pretty handy considering many local addresses rely on well-known landmarks rather than traditional “house number, street name” formats.

Competition, of course, is fierce. Home-grown platforms like Jahez already have strong user bases, and China's heavy-weight Meituan has tossed its hat into the Saudi ring with the launch of Keeta. Nevertheless, Rabbit seems determined to differentiate itself through slick operations— aiming ambitiously to nail 94% of deliveries within a brisk 20-minute window.

In a market evolving this rapidly, Rabbit’s smart pairing of AI technology with a deep understanding of uniquely Saudi consumer needs positions them as strong contenders. Keep your eye on this lot—it looks like they'll be hopping into the spotlight more and more as quick commerce takes the Kingdom by storm.

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