Food-delivery company Wolt will exit Japan as rising competition tests its global strategy, its parent firm DoorDash said Wednesday.

Wolt will also withdraw from Uzbekistan, while fellow DoorDash subsidiary Deliveroo will cease its food delivery services in Singapore and Qatar.

¡°These decisions follow a multi-month review of country-specific conditions and reflect DoorDash¡¯s continued focus on investing where it sees the clearest path to sustainable scale and long-term leadership,¡± the company said in a statement, adding that it ¡°does not expect these actions to materially impact its financial outlook.¡±

Use of food delivery services surged during the pandemic, when fewer people were dining out, but rising competition has proved challenging for firms and led to consolidation in a number of markets. Labor shortages have also hampered operations.

Miki Kuusi, who heads DoorDash International and is a co-founder of Wolt, called the decision ¡°difficult.¡±

¡°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,¡± Kuusi said.

DoorDash was founded in 2013 and operates in more than 40 countries. Finnish food delivery service Wolt, owned by DoorDash, entered the Japan market in 2020 and offers deliveries from popular restaurant chains including Mos Burger, KFC, CoCo Ichibanya and Yoshinoya.

While the food-delivery category rose from 9.5% of global food-service sales in 2019 to 21.3% in 2024, according to Euromonitor data, the market has many participants competing fiercely.

In Japan, in addition to homegrown Demaecan and U.S.-based Uber Eats, many restaurants also provide their own delivery services. Others that have attempted to crack the market have struggled.

NTT Docomo¡¯s D delivery, Foodpanda and Maishoku, a Tokyo-based bilingual food delivery service, are among companies that have ceased food delivery services in Japan in recent years.