DoorDash, the leading food delivery platform, has announced the discontinuation of its operations in Singapore and Japan to concentrate on markets with higher priorities.
In Singapore, DoorDash will be closing down its Deliveroo service on March 4, thus drawing a curtain over its 11-year long tenure in the city-state. The firm has indicated that services will remain operational until the shutdown, advising customers to exhaust any residual credits and gift cards before the cessation of operations.
In a related development, the company has also confirmed the planned closure of Deliveroo and Wolt services in Qatar, Uzbekistan, and Japan. This decision was reached following an extensive evaluation of market conditions spanning several months. According to DoorDash, the exit strategy is hinged on factors specific to each of these countries and is aligned with the company’s strategic thrust to focus on markets that offer the greatest potential for sustainable growth and long-term dominance.
Despite describing the decision as a challenging one, the firm has committed to closely collaborating with relevant local stakeholders to effect a seamless transition in the immediate future.
Miki Kuusi, the Head of DoorDash International, CEO of Deliveroo and co-founder of Wolt, expressed gratitude to all who have been a part of their journey. He remarked, “Over the last 11 years, we have been proud to shape food delivery in Singapore, granting consumers access to an extensive range of restaurant and grocery partners. To all our employees, customers, partners, and riders who have accompanied and supported us on this journey – thank you.”
It’s worth noting that in the previous year, Deliveroo also withdrew from the Hong Kong market on April 7, after operating there for nine years. This followed an agreement to sell some of its assets to Foodpanda.
Why is DoorDash discontinuing its operations in Singapore and Japan?
DoorDash is discontinuing operations in Singapore and Japan to focus on markets with higher priorities.
What will happen to the remaining credits and gift cards of customers in Singapore?
Customers are advised to exhaust any remaining credits and gift cards before DoorDash ceases operation on March 4.
Can we expect further market exits from DoorDash?
While not explicitly stated, the company’s strategic focus on markets where it sees a clear path to sustainable scale and long-term leadership might lead to further market exits.
