Deliveroo Withdraws from Qatar and Singapore Following DoorDash Acquisition
Deliveroo, the prominent British food delivery service, is set to terminate its operations in Qatar and Singapore, as confirmed by its US owner DoorDash. This decision comes just months after DoorDash completed a £2.9 billion takeover of the London-based company in October last year.
Strategic Shift and Job Impacts
The withdrawal from these two Asian markets follows a comprehensive strategic review conducted by DoorDash, which assessed specific market conditions. The company aims to redirect its investments toward regions with greater growth potential, streamlining its global footprint.
Approximately 85 jobs will be affected by the closure of Deliveroo's platforms in Qatar and Singapore, with services expected to remain active until March 4. In a related move, DoorDash will also shut down one of Deliveroo's engineering hubs in Bengaluru, India, impacting around 100 employees.
Focus on UK Engineering and Broader Restructuring
As a result of these changes, Deliveroo plans to increase its investment in engineering roles within the United Kingdom, reinforcing its commitment to technological development in its home market.
This announcement is part of a broader overhaul by DoorDash, which includes pulling its other delivery platform, Wolt, from Japan and Uzbekistan. Miki Kuusi, head of DoorDash International and CEO of Deliveroo, stated, "We've made the difficult decision to wind down operations in Qatar, Singapore, Japan, and Uzbekistan. 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."
Background on the Acquisition and Future Plans
DoorDash, which operates in countries such as the United States, Canada, Australia, and New Zealand, delivers over 2.5 billion orders annually. The acquisition of Deliveroo was intended to expand its footprint into new locations, leveraging Deliveroo's established presence in various markets.
At the time of the takeover, DoorDash initiated a 12-month review of the merged group, anticipating a potential workforce reduction of approximately 1% to 3%. This latest move aligns with that ongoing evaluation, as the company seeks to optimize its operations and concentrate resources on areas deemed most promising for future growth.
