Deliveroo's new US owner, DoorDash, has announced it will pull the food delivery platform from Qatar and Singapore, marking a significant shift in its international strategy. This decision comes months after DoorDash completed its acquisition of the London-based business last year, with the move set to impact approximately 85 jobs across the two Asian countries.
Strategic Review Leads to Market Exit
According to DoorDash, the withdrawal from Qatar and Singapore follows a thorough review of the specific conditions in each country. The company stated it is focusing its investments on regions where it believes it can achieve sustainable growth and build for long-term success. Deliveroo's platforms in these countries will remain operational until March 4, allowing for an orderly transition.
Engineering Hub Closure in India
In addition to the market exits, DoorDash revealed that one of Deliveroo's engineering hubs in Bengaluru, India, will be closed. This closure is expected to affect around 100 employees, further streamlining operations as part of the broader restructuring effort.
DoorDash emphasized that these changes will enable Deliveroo to redirect resources and invest more heavily in engineering roles within the United Kingdom. This move aligns with the company's goal of strengthening its core markets while optimizing its global footprint.
Broader Overhaul Affects Wolt Platform
The announcement coincides with DoorDash's decision to pull its other delivery platform, Wolt, from Japan and Uzbekistan. This broader overhaul reflects DoorDash's strategic realignment under its international leadership.
Miki Kuusi, head of DoorDash International and the chief executive of Deliveroo, commented on the difficult decisions, stating, "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
DoorDash acquired Deliveroo in October of last year in a takeover deal valued at £2.9 billion. At the time of the acquisition, DoorDash initiated a 12-month review of the merged group, indicating potential workforce reductions of approximately 1% to 3% across the combined operations.
DoorDash, which operates in countries including the United States, Canada, Australia, and New Zealand, delivers over 2.5 billion orders annually. The company believes that its acquisition of Deliveroo will facilitate expansion into new locations, despite the current withdrawals from certain markets.
This restructuring underscores the competitive and dynamic nature of the global food delivery industry, as major players like DoorDash reassess their international strategies to enhance efficiency and focus on high-growth areas.
