DoorDash (DASH) Stock Gains 5% Following Exit from Four Markets — Here’s Why

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TLDR

  • DoorDash is leaving Qatar, Singapore, Japan, and Uzbekistan to concentrate on markets that offer better growth opportunities.
  • The firm is shutting down Deliveroo’s Bengaluru engineering center and reallocating those employees.
  • DoorDash states that these withdrawals will not affect its financial forecasts.
  • Shares gained 5% following the announcement but have declined 21.3% so far this year, currently trading near $173.06.
  • DoorDash is also expanding into restaurant reservations through its $1.2 billion purchase of SevenRooms, positioning itself against competitors OpenTable and Resy.

DoorDash is withdrawing from Qatar, Singapore, Japan, and Uzbekistan. The San Francisco-headquartered firm indicated that this move comes after a months-long assessment of the business environment in each nation.

DASH Stock Card

The company stated it aims to allocate its resources toward markets where it can establish “sustainable scale and long-term market leadership.” This represents a clear acknowledgment that some markets were not performing as hoped.

DoorDash entered some of these markets relatively late. It launched operations in Japan in 2021, five years after Uber Eats had already established a presence there. Deliveroo, which DoorDash purchased last year, had only entered Qatar in 2022.

In Singapore, the company competed against GrabFood and Foodpanda. In Uzbekistan, Russia’s Yandex Eats held a strong position. These were challenging markets to penetrate.

In addition to leaving these markets, the company is shuttering Deliveroo’s engineering hub in Bengaluru, India. Engineers from that location will be reassigned to other positions within DoorDash.

DoorDash indicated that these strategic moves will not alter its financial projections. Investors appeared to welcome the clear direction, as DASH shares surged 5% on the announcement.

However, the stock remains down 21.3% for the year and has fallen 17.4% in the last month. It currently trades at approximately $173.06.

Reservation Wars

As it reduces its international delivery operations, DoorDash is concurrently venturing into a new competitive arena: restaurant reservations.

In June, DoorDash revealed its $1.2 billion acquisition of SevenRooms, a platform that enables direct reservations via restaurant websites. This move places DoorDash in direct rivalry with OpenTable and Resy.

Uber Eats had already collaborated with Booking Holdings’ OpenTable to incorporate reservation functionality into its application. American Express, which owns Resy, acquired the premium reservation platform Tock for $400 million in 2024.

This summer, Resy intends to integrate Tock’s 5,000 establishments into its network, increasing its total to approximately 25,000 restaurants. OpenTable continues to lead the market with about 60,000 venues.

According to Deliverect, DoorDash commands roughly 67% of the U.S. food delivery market as of 2025. Uber Eats ranks second with a 23% share.

International Strategy

On the global stage, DoorDash has been working to close the gap with competitors. Uber Eats maintains a more robust international footprint, which partly motivated DoorDash’s acquisitions of Deliveroo and the Finnish delivery platform Wolt in 2021.

The recent market withdrawals indicate that DoorDash is becoming more discerning about where it competes. Instead of diluting its efforts across markets where competitors are well-established, the company is focusing on regions where it believes it can achieve genuine market leadership.

Miki Kuusi, who leads DoorDash’s international division, stated that the company’s focus is on “supporting our teams and partners through an orderly transition” as it concentrates on markets with long-term potential.

The closure of the Bengaluru hub reflects this broader operational streamlining — shifting engineering resources rather than sustaining operations in markets that are being phased out.

DoorDash shares have delivered a 12.9% return over the past year and a 16.7% return over five years, even with the recent decline.