TLDR
- DoorDash has decided to withdraw operations from Qatar, Singapore, Japan, and Uzbekistan, concentrating on more promising markets.
- Operations at Deliveroo’s Bengaluru engineering center will cease, with personnel being reassigned internally.
- Financial projections remain unchanged despite these strategic exits, according to the company.
- Shares climbed 5% following the announcement, though they remain down 21.3% for the year, hovering near $173.06.
- The company expands into restaurant booking services through its $1.2 billion SevenRooms purchase, challenging OpenTable and Resy.
The food delivery giant has announced its departure from four international territories: Qatar, Singapore, Japan, and Uzbekistan. According to the San Francisco-headquartered firm, this strategic decision comes after conducting an extensive multi-month evaluation of market conditions across these regions.
The rationale centers on channeling resources toward territories offering genuine opportunities for “sustainable scale and long-term market leadership.” This represents a candid acknowledgment that expansion efforts in certain regions failed to meet expectations.
Timing played against DoorDash in several markets. Its Japanese venture launched in 2021, trailing Uber Eats by half a decade. The Deliveroo acquisition brought Qatar operations that had only commenced in 2022.
Singapore presented formidable competition from established players GrabFood and Foodpanda. Uzbekistan’s market was dominated by Russia’s Yandex Eats. Breaking into these competitive landscapes proved more challenging than anticipated.
Beyond territorial exits, DoorDash plans to shutter Deliveroo’s Bengaluru-based engineering facility. Technical personnel stationed there will transition to other positions throughout the organization.
The company maintains these strategic adjustments won’t alter existing financial projections. Investors responded favorably to the news—DASH shares rose 5% following the announcement.
However, broader context reveals continued pressure on valuation. Year-to-date losses stand at 21.3%, with a 17.4% decline over the previous month. Current trading levels sit around $173.06.
Reservation Wars
While contracting its international delivery operations, DoorDash simultaneously expands into restaurant reservation technology.
June brought news of a $1.2 billion SevenRooms acquisition—a platform specializing in direct reservation systems through restaurant-owned websites. This move positions DoorDash as a competitor to established players OpenTable and Resy.
Uber Eats has already established reservation capabilities through collaboration with Booking Holdings’ OpenTable platform. Meanwhile, American Express-owned Resy acquired premium reservation service Tock for $400 million last year.
Resy’s summer plans include integrating Tock’s 5,000 establishments, expanding its network to approximately 25,000 restaurants. OpenTable maintains market leadership with roughly 60,000 venues.
Within U.S. food delivery, DoorDash commands approximately 67% market share as of 2025, per Deliverect data. Uber Eats holds second position at 23%.
International Strategy
Globally, DoorDash has struggled to match Uber Eats’ established international network. Strategic acquisitions of Deliveroo and Finland’s Wolt in 2021 aimed to address this gap.
Recent market withdrawals signal a more selective approach to international competition. Instead of maintaining presence across markets where competitors hold entrenched positions, the strategy shifts toward geographic concentration where market leadership appears achievable.
Miki Kuusi, head of DoorDash’s international division, said the company’s priority is “supporting our teams and partners through an orderly transition” as it focuses on markets where it can build long-term.
Closing the Bengaluru facility aligns with this operational streamlining—reallocating technical talent away from markets undergoing wind-down procedures.
Despite recent volatility, DoorDash stock shows a 1-year return of 12.9% and 16.7% over five years.
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