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DoorDash announced Wednesday it will cease operations in Qatar, Singapore, Japan, and Uzbekistan following a comprehensive review of its international strategy. The San Francisco-based food delivery giant cited the need to prioritize markets where it can build sustainable operations and establish long-term market leadership.
“Our priority is supporting our teams and partners through an orderly transition as we focus on the geographies where we can offer the best products and build for long-term success,” said Miki Kuusi, who heads DoorDash’s international division.
The company’s late entry into several of these markets appears to have hampered its ability to gain significant market share against established competitors. In Japan, DoorDash launched operations in 2021, a full five years after Uber Eats had already established a foothold in the competitive Japanese delivery market.
Similarly, Deliveroo—acquired by DoorDash last year—only began operating in Qatar in 2022, nearly a decade behind regional powerhouse Talabat, which has dominated food delivery services across the Middle East since establishing operations in Qatar.
The competitive landscape in Singapore posed particular challenges, with entrenched regional players like GrabFood and Foodpanda commanding substantial market share. In Uzbekistan, the company faced tough competition from Russia-based Yandex Eats, which has leveraged its regional expertise to capture a significant portion of the Central Asian delivery market.
Industry analysts note that DoorDash’s decision reflects the increasing consolidation within the global food delivery sector, where scale and first-mover advantage often determine which platforms survive. The pandemic-era boom in food delivery has given way to a more competitive landscape where profitability and sustainable growth have become paramount concerns for investors.
Despite these market exits, DoorDash maintains that the decision will not impact its financial guidance for the year. Wall Street responded positively to the announcement, with the company’s shares rising 5% in midday trading on Wednesday, suggesting investors approve of the strategic realignment to focus on more promising markets.
The move highlights DoorDash’s ongoing efforts to strengthen its international presence, particularly against its chief global rival, Uber Eats. While DoorDash holds a dominant position in the United States, it has struggled to match Uber’s international footprint.
To address this gap, DoorDash has pursued an aggressive acquisition strategy in recent years. Beyond purchasing UK-based Deliveroo, the company acquired Finnish delivery service Wolt in 2021 to accelerate its expansion into European markets. These strategic acquisitions have been central to DoorDash’s efforts to build scale across international markets without having to build operations from the ground up.
The food delivery industry continues to evolve globally as companies seek the right balance between growth and profitability. Many delivery platforms expanded rapidly during the COVID-19 pandemic when demand for home delivery surged, but now face pressure to demonstrate sustainable business models in a post-pandemic environment where consumer habits have partially reverted to pre-pandemic patterns.
DoorDash’s market exits represent part of a broader trend of strategic consolidation in the food delivery sector, as companies focus resources on markets where they can achieve operational efficiency and maintain competitive advantages against local and global rivals.
The company is expected to provide additional details about its international strategy during its next earnings call, where investors will be looking for signs that this more focused approach will strengthen DoorDash’s global competitiveness against Uber Eats and other regional delivery platforms.
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7 Comments
Interesting move by DoorDash. Focusing on core markets where they can build sustainable leadership makes sense, even if it means exiting some smaller international locations. Competition in the food delivery space is fierce, so prioritizing their strengths is likely a prudent strategy.
Agreed. Entering late in some markets may have made it difficult for DoorDash to gain meaningful share against more entrenched players. Consolidation and strategic exits could position them better for long-term success.
The competitive landscape in the food delivery space is certainly challenging. DoorDash’s decision to focus on markets where they can be a dominant player makes business sense, even if it means retreating from some smaller international locations.
I’m curious to see how DoorDash’s international footprint evolves going forward. Exiting underperforming markets seems like a sensible move, but I wonder if they’ll look to expand in other regions where they see greater growth potential.
Good point. The food delivery industry is still rapidly evolving globally, so DoorDash may look to target new markets where they can establish an early lead. It will be interesting to track their international expansion strategy in the coming years.
I wonder if DoorDash’s exit from these markets is an acknowledgment that they spread themselves too thin trying to gain a global foothold too quickly. Concentrating on their core strengths could be a wise move to ensure long-term sustainability.
That’s a fair assessment. Rapid international expansion can be risky, especially in highly competitive industries. Paring back to focus on key markets is likely a prudent strategy for DoorDash as they look to solidify their position.