TLDR
- DoorDash withdraws operations from Qatar, Singapore, Japan, and Uzbekistan to concentrate resources on higher-potential markets.
- Deliveroo’s Bengaluru engineering hub faces closure with staff being reassigned to other locations.
- The company maintains its existing financial guidance remains unchanged despite these exits.
- Shares gained 5% following the announcement, though the stock remains down 21.3% year to date at approximately $173.06.
- The company expands into restaurant reservations through its $1.2 billion SevenRooms purchase, challenging OpenTable and Resy.
DoorDash announced its departure from operations in Qatar, Singapore, Japan, and Uzbekistan. The delivery giant based in San Francisco reached this conclusion after conducting a comprehensive multi-month assessment of conditions across these regions.
The organization plans to channel its resources toward markets offering opportunities for “sustainable scale and long-term market leadership.” This represents a candid acknowledgment that certain markets failed to meet expectations.
DoorDash entered several of these territories behind competitors. The company launched Japanese operations in 2021, arriving five years after Uber Eats established its presence there. Deliveroo, acquired by DoorDash in the previous year, entered Qatar only in 2022.
Singapore presented competition from GrabFood and Foodpanda. Uzbekistan saw Russia-based Yandex Eats maintaining a dominant position. Breaking into these markets proved challenging.
Alongside the territorial withdrawals, DoorDash shutters Deliveroo’s engineering facility in Bengaluru, India. The company plans to reassign engineering personnel from this location to other divisions.
DoorDash confirmed these strategic moves leave its financial guidance intact. Investors responded favorably to the strategic clarity — DASH shares rose 5% following the announcement.
The stock continues to face headwinds, showing a 21.3% decline year to date and a 17.4% drop over the past month. Current trading hovers around $173.06.
Reservation Wars
While consolidating its international delivery operations, DoorDash expands into a competitive new sector: restaurant reservations.
June brought DoorDash’s announcement of acquiring SevenRooms for $1.2 billion, a platform specializing in direct bookings via restaurant websites. This move places DoorDash in competition with OpenTable and Resy.
Uber Eats formed a partnership with Booking Holdings’ OpenTable to embed reservations within its application. American Express, Resy’s owner, acquired premium reservation platform Tock for $400 million in 2024.
This summer, Resy will incorporate Tock’s 5,000 venues into its network, expanding its total to approximately 25,000 restaurants. OpenTable maintains leadership with around 60,000 venues.
DoorDash commands approximately 67% of the U.S. food delivery market as of 2025, according to Deliverect. Uber Eats holds second position with 23%.
International Strategy
Globally, DoorDash has pursued expansion aggressively. Uber Eats maintains a more established international footprint, which motivated DoorDash to acquire Deliveroo and Finnish delivery service Wolt in 2021.
The recent market withdrawals demonstrate DoorDash’s selective approach to competitive battles. Rather than maintaining presence across markets where competitors hold entrenched positions, the company consolidates around geographies offering genuine leadership opportunities.
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.
The Bengaluru hub closure aligns with this operational consolidation strategy — redirecting engineering resources away from markets undergoing wind-down.
DoorDash stock demonstrates a 1-year return of 12.9% and a 5-year return of 16.7%, despite recent declines.
