Deliveroo exits Qatar in global pullback from four markets

Food delivery giant exits four markets to focus on scale and profitability

Last updated:
Nathaniel Lacsina, Senior Web Editor
Company ends Qatar operations as Talabat dominates regional food delivery.
Company ends Qatar operations as Talabat dominates regional food delivery.
Bloomberg

US food delivery giant DoorDash is shutting down operations in Qatar, Japan, Singapore and Uzbekistan, the company confirmed, as it recalibrates its international expansion strategy to focus on markets where it can build long-term scale.

The decision follows what DoorDash described as a “monthslong review” of country-specific conditions. “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, head of DoorDash’s international division.

The move is expected to have no material impact on DoorDash’s financial guidance, and the company’s shares rose in US trading following the announcement.

Qatar: A highly competitive delivery market

According to Reuters, DoorDash’s exit from Qatar comes amid intense competition in the Gulf’s fast-growing online food delivery sector. The Qatari market is dominated by regional players including Talabat, owned by Germany-based Delivery Hero, which has operated in Qatar for nearly a decade.

UK-founded Deliveroo, which DoorDash acquired last year, had entered Qatar in 2022 but struggled to displace established rivals.

Qatar’s delivery ecosystem has expanded rapidly in recent years, driven by high smartphone penetration, urban density and a strong preference for app-based ordering. According to data cited by Gulf Times, the country’s online food delivery market is projected to grow steadily through 2027, supported by tourism and large-scale events.

Industry analysts say late entrants like DoorDash face significant barriers in Qatar due to entrenched brand loyalty and existing logistics networks built by Talabat and other regional operators.

Deliveroo’s platform in Qatar and Singapore will cease operations on March 4.

Global repositioning amid competitive pressure

DoorDash’s international retreat reflects broader competitive pressure in the global food delivery market. While the company remains the dominant player in the United States, it has trailed rivals such as Uber Eats internationally.

In recent years, DoorDash has expanded aggressively overseas, acquiring Finnish delivery service Wolt in 2021 to strengthen its European footprint, and purchasing UK-based Deliveroo to deepen its reach across Europe and the Middle East.

However, in markets like Singapore, DoorDash has faced stiff competition from GrabFood and Foodpanda, while in Uzbekistan it contended with Russia-based Yandex Eats, according to regional media reports.

Focus shifts to core growth regions

DoorDash said it will now concentrate resources on markets where it sees clearer paths to profitability and leadership. The company did not specify timelines for the shutdowns in Qatar and the other affected markets but said transitions would be handled in coordination with local partners and merchants.

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