RIYADH: Early users of quick commerce company Rabbit in Riyadh are already showing promising signs of engagement, with weekly reorder rates comparable to those in the company’s more mature Egyptian market, Arab News has been told.
This strong early traction points to a positive product-market fit as the Cairo-based startup expands into Saudi Arabia.
Rabbit officially launched operations in the Kingdom in early 2024 and is aiming to replicate its hyper-growth strategy by tailoring its model to each city — starting with Riyadh.
“A more indicative, and exciting, insight is that we are seeing early users in Saudi Arabia already having a reorder rate of around one order a week,” said Ahmad Yousry, co-founder and CEO of Rabbit, in an interview with Arab News.
“This is in line with our much more established customer base in Egypt, which is a compelling sign for us,” he added.
Rabbit has already delivered more than 40 million items to 1.4 million users in Egypt, a market that has served as a foundational blueprint. However, the company is taking care not to simply copy and paste its strategies.
“Hence, we adopt a tailored approach, focused on building city-by-city and being highly nimble as a company, which has already proven key,” said Yousry.
Within six weeks of launching in Riyadh, Rabbit built a network of dark stores covering half of the city. Its goal is to expand across the remainder of the capital and into additional cities over the next 24 months. Dark stores — also known as micro-fulfillment centers or dark warehouses — are retail or distribution hubs designed exclusively to handle and process online shopping orders.
Known for its ultra-fast service, Rabbit is maintaining its performance standards in Saudi Arabia.
“Our goal is to deliver over 94 percent of our orders within the promised time frame,” Yousry said, referring to Rabbit’s 20-minute delivery commitment.
Rabbit aims to deliver 20 million items in Saudi Arabia by 2026, forecasting exponential — not linear — growth. While the company has not disclosed current delivery volumes or active user numbers in the Kingdom, Yousry emphasized the importance of retention over vanity metrics.
“We focus on methodically growing the number of households that depend on Rabbit on a weekly basis,” he said.
” A more indicative, and exciting, insight is that we are seeing early users in Saudi Arabia already having a reorder rate of around one order a week.”
Ahmad Yousry, co-founder and CEO of Rabbit
In Egypt, Rabbit recorded 2.5 times year-on-year growth in the first quarter of 2025, highlighting the scalability of its operational model.
Yousry cautioned against direct comparisons, saying: “The unit economics for both markets are quite different. We try not to base our growth strategy on comparative analytics, but rather on adapting the operational learnings from one market to another and building a sustainable business model around them.”
According to Yousry, increasing customer numbers and basket sizes are central to sustainable growth.
“There are two fundamental ways to grow the business in a sustainable and organic manner: acquire more customers and, or, increase the basket value per customer. We aim to focus on both of these elements,” he said.
A major element of Rabbit’s regional strategy is local sourcing. In Egypt, over 60 percent of products are sourced from local suppliers, and the company is pursuing a similar — or higher — ratio in Saudi Arabia.
“In Saudi Arabia, we are currently on track to have even more local brands on the platform,” Yousry said.
“Our partner-first focus, and our commitment to growing local brands and empowering local entrepreneurs, has significantly paid off in Egypt and we expect to see the same in Saudi Arabia.”
Beyond fulfillment, Rabbit is prioritizing customer experience, emphasizing both convenience and reliability.
“While speed is incredibly important, to be successful in the e-grocery market, you must also focus on the other key elements of the customer experience: convenience and reliability,” said Yousry.
“Our customers know they can count on us to deliver speed, convenience, and consistency.”
Technology, particularly artificial intelligence, plays a critical role in Rabbit’s operations. The company is applying AI to enhance inventory management, logistics, and user engagement.
“AI is a fundamental enabler of our operations and future growth in Saudi Arabia,” Yousry said.
