Buy Computers and More on Rakuten
Name: Rakuten (Visit Rakuten)
Best Website For: Shopping Electronics
Reason it's on The Best Sites:
Rakuten is an excellent marketplace for electronics, as well as many other products such as clothing. The Japanese company has items that you can't find on other websites.
Rakuten's traffic is ranked 3116 globally
|Traded as||TYO: 4755|
|Founded||February 7, 1997 (1997-02-07) (as MDM, Inc.)|
|Headquarters||Setagaya, Tokyo, Japan|
|29 countries and regions|
(Chairman and CEO)
|Revenue||¥781.9 billion (2016)|
|¥38.0 billion (2016)|
Number of employees
|14,826 (June 2017)|
Rakuten Kobo Inc.
Rakuten, Inc. (楽天株式会社, Rakuten Kabushiki-gaisha) - "Rakuten" is pronounced like "Luck Ten" - is a Japanese electronic commerce and Internet company based in Tokyo and founded in 1997 by Hiroshi Mikitani. Its B2B2C e-commerce platform Rakuten Ichiba is the largest e-commerce site in Japan and among the world’s largest by sales. The company operates Japan's biggest Internet bank and third-largest credit card company (by transaction value). It also offers e-commerce, fintech, digital content and communications services to over 1 billion members around the world, and operates in 29 countries and regions. It is often referred to as "the Amazon of Japan".
In 2005, Rakuten started expanding outside Japan, mainly through acquisitions and joint ventures. Its major acquisitions include Buy.com (now Rakuten.com in the US), PriceMinister (France), Ikeda (now Rakuten Brasil), Tradoria (now Rakuten Deutschland), Play.com (now Rakuten.co.uk in the UK), Wuaki.tv (now Rakuten TV in Spain), Kobo Inc. (now Rakuten Kobo in Canada), Viber (now Rakuten Viber), Ebates, Viki (now Rakuten Viki), OverDrive, Inc. (now Rakuten OverDrive), Slice (now Rakuten Slice) and The Grommet. The company also has an online marketing business, Rakuten Marketing, and has investments in companies such as Pinterest, Ozon.ru, AHA Life, Lyft, Cabify, Careem, Carousell and Acorns.
In 2015, Rakuten relocated its corporate headquarters from Shinagawa to the Tamagawa neighbourhood of Setagaya-ku, to consolidate its Tokyo offices and to accommodate future growth. In 2016, the company's revenues totaled US$7.2 billion with operating profits of about US$347.9 million. As of June 2017, Rakuten reported it had a total of 14,826 employees worldwide.
On 16 November 2016, Rakuten announced a €220 million deal for global sponsorship with Spanish football club FC Barcelona starting in the 2017-18 La Liga season through 2020, replacing Qatar Airways for this role. Rakuten's Viber will also be the official communication channel of FC Barcelona. In September 2017, it was announced that Rakuten would become the official sponsor for the jersey patch on the new Nike NBA uniforms for the Golden State Warriors.
Early years (1997-99)
Rakuten was founded as MDM, Inc. by Hiroshi Mikitani on February 7, 1997. The online shopping marketplace Rakuten Shopping Mall (楽天市場, Rakuten Ichiba) was officially launched on May 1, 1997. The company had 6 employees and the website had 13 merchants. The name was changed to Rakuten in June 1999. The Japanese word "rakuten" means "optimism".
Harvard-educated former banker Mikitani envisioned the site as an online shopping mall, offering the opposite of what the larger companies like IBM were trying to do with similar services, by offering empowerment to merchants rather than trying to tightly control the virtual storefront. The service was offered for a smaller fee than the larger Internet malls were charging, and merchants were given more control, such as the ability to customize their storefronts on the site.
The company went public through an IPO on the JASDAQ market on April 19, 2000. At the time, the online marketplace had 2,300 stores and 95 million page views per month, making it one of the most popular sites in Japan.
In March 2001, online hotel reservation service Rakuten Travel was launched. In April 2002, a new system was introduced for merchants, combining monthly fixed fees with commissions on sales. That November, the Rakuten Super Point Program, a membership loyalty program, was introduced.
In September 2004, Rakuten grew its financial services businesses by acquiring consumer finance company Aozora Card Co., Ltd., later renaming it Rakuten Card Co., Ltd. The company began offering a Rakuten credit card in 2005. By November 2016, the Rakuten card was held by over 13 million people, and nearly 40% of Rakuten's revenue was from financial services, as it was operating Japan’s largest Internet bank and third-largest credit company. Rakuten card holders are a part of a point-based membership program, and can use those points to make purchases on the Internet mall. In 2016, the company introduced Rakuten Pay, an app-based smartphone payment system.
In a joint venture in February 2008, Rakuten and President Chain Store established Rakuten's first e-commerce site outside of Japan with Rakuten Ichiba Taiwan.
Around 2011, Rakuten started heavily expanding outside of Japan, with prominent moves including a stake in Canadian e-book maker Kobo Inc. and an investment in Pinterest. In 2011, Rakuten launched Indonesia's Rakuten Belanja Online. By late 2012, Rakuten had moved into online retail in Austria, Canada, Spain, Taiwan and Thailand and into the online travel markets in France — with Voyager Moins Cher.com — and China, Hong Kong, Korea and Taiwan — with its Tokyo-based international Rakuten Travel platform. In North America, Rakuten Golf made booking tee time online possible. To increase its global competitiveness, and to better incorporate non-Japanese speakers, Rakuten decided to adopt English as the company's official language starting in 2012. By 2016, nearly 40% of the company’s engineers in Japan were non-Japanese.
In March 2015, Rakuten announced that it would begin accepting bitcoin across its global marketplaces, shortly after investing in San Francisco-based bitcoin payments-processing startup Bitnet Technologies. Rakuten has been a strong supporter of bitcoin's potential, and was one of the first major companies to accept bitcoin for payment.
In 2016, Rakuten shut down retailing websites in the UK, Spain, Austria, Singapore, Indonesia and Malaysia.
On November 16, 2016, Rakuten announced it had agreed to a four-year partnership with the football club FC Barcelona, one of the most successful football teams in Europe. The agreement would see Rakuten become FC Barcelona's main global partner beginning with the 2017-18 season, with its name appearing on match-day jerseys. The deal was worth at least €220 million and includes an option for a one-year extension.
Rakuten partnered with California-based Blackstorm Labs to launch an online social gaming platform called R Games in April 2017, going live with 15 free games optimized for smartphones, including Pac-Man and Space Invaders. The games are based on HTML5, which can be played across any device and on any platform, and Rakuten will tap into its worldwide database of 114 million online shoppers. Rakuten plans to integrate R Games into its messaging app Viber.
In September 2017, it was announced that Rakuten signed a three-year, $60 million deal to become the official sponsor for the jersey patch on the front of the uniforms for the Golden State Warriors of the NBA.
Rakuten partnered with Walmart for a rather late push on e-books in January of 2018.
The Rakuten Group consists in total of around 70 businesses and services in addition to its online marketplace, including:
- Online shopping
- Credit card and payments
- Travel reservations
- Professional sports
- Video on demand
- Marketing and data analysis
- Book distribution
- Mobile messaging
Acquisitions and investments
In September 2003, the company acquired MyTrip.net, which was merged with Rakuten Travel the following year.
In 2005, Rakuten bought New York City-based LinkShare, later rebranded as Rakuten Marketing, offering performance-based online sales and marketing programs. The acquisition spearheaded Rakuten's new global focus.
In October 2005, Rakuten bought a 15% stake in Tokyo Broadcasting System, raising its stake in the broadcaster to 19%. Rakuten later withdrew its bid and sold its shareholding back to Tokyo Broadcasting.
In 2010, Rakuten bought French online retailer PriceMinister for €200 million and US-based Buy.com for US $250 million. The group had been a significant shareholder in Ctrip, a Chinese travel site until it sold its stake in the company in August 2007 and, in 2010, it announced a joint venture with Baidu in China (Lekutian).
In June 2011, Rakuten acquired Brazilian e-commerce firm Ikeda — since renamed Rakuten Brazil. In July, it bought German e-commerce start-up Tradoria and rebranded it Rakuten Deutschland, and in September UK online retailer and e-commerce marketplace Play.com for £25 million (almost $41 million), which was converted into the points-based loyalty program Rakuten.co.uk. In September 2011, Rakuten took a minority equity stake in Russian online retailer Ozon.ru, dubbed "Russia's Amazon", which had reported 2010 sales worth US$137 million. A four-company-strong consortium, led by the Japanese group, invested US$100 million. Rakuten's stake was not revealed. Rakuten announced an agreement to buy Canadian e-book reader company Kobo in November, with the deal finalized in January 2012.
In July 2012, Rakuten led a $100 million investment in Pinterest, at a $1.5 billion valuation. Its partners were existing investors Andreessen Horowitz, Bessemer Venture Partners, and FirstMark Capital, and a number of investment “angels”. That investment marked the start of a drive to expand Pinterest's presence in Japan and Rakuten’s 17 other global markets.
On 13 June 2012, Rakuten bought Wuaki.tv, a Spanish video on demand (VOD) service/company that is one of the largest in Europe and the market leader in Spain; as of July 2017, it has 5 million users across 12 markets in Europe. The purchase opened new opportunities, directly challenging Amazon, Netflix and others for domination of the VOD market, starting in Europe. In November 2012, Rakuten bought French online retail delivery company Alpha Direct Services, to increase speed and quality of delivery.
In May 2013, Rakuten acquired a majority share in "citizen commerce" site Daily Grommet, since rebranded as The Grommet. In June 2013, Rakuten announced its acquisition of U.S.-based logistics and services company Webgistix, specializing in fulfillment technology for e-commerce retailers. The acquisition was Rakuten's second logistics investment outside Japan and enables prompt fulfillment in the U.S.
In September 2013, Rakuten acquired Singapore-based video site Viki. In November 2013, Rakuten led a US $800,000 seed round of funding for Singapore-based consumer-to-consumer marketplace app Carousell.
On February 13, 2014, Rakuten announced the acquisition of Tel Aviv-based web messaging company Viber Media for $905 million, to link up messaging with e-commerce. The Viber app is for making phone calls and sending free messages.
On May 29, 2014, Rakuten Marketing acquired DC Storm, a UK-based technology company which specializes in marketing attribution modeling and data-driven marketing.
In August 2014, Rakuten announced its purchase of Slice, a US company that provides online shopping services and sells business intelligence based on digital commerce measurement, for an undisclosed sum.
In September 2014, it was revealed that Rakuten would acquire US rebate site operator Ebates Inc. for approximately USD $952 million to give the company more access to US consumers and help it grow abroad, as it takes on rivals such as Amazon.com and Alibaba. Ebates offers coupons and cash rebates to customers who shop at its more than 1,700 partner retailers.
In March 2015, Rakuten announced the acquisition of OverDrive, Inc., a wholesale distributor of e-books and other digital content that serves libraries and retailers, based in Cleveland, Ohio. The acquisition price was $410 million in cash.
Since 2015, Rakuten has invested in several ride-hailing services. In March 2015, Rakuten led a $530 million round of venture financing for Lyft, spending $300 million for a 12% stake in the company. In April 2016, Rakuten announced it would invest an additional $92 million in Cabify, which was founded in 2012 in Spain and is one of the largest ride-hailing services in Latin America. Rakuten previously invested $3 million in Cabify in 2015. Rakuten led a $500 million Series E round of funding in Middle Eastern transportation startup Careem, which closed out in June 2017.
In April 2016, Rakuten participated in a $30 million round of financing for investing app Acorns.
In August 2016, Rakuten confirmed that it had acquired the assets of bitcoin wallet startup Bitnet, with the assets to be used to create a research facility, Rakuten Blockchain Lab, based in Belfast that will explore the potential of the blockchain.
In April 2017, Rakuten invested USD $2.4 million in Singapore-based MetroResidences, which allows homeowners to rent their properties out to companies and corporate tenants.
In January 2018, the Group purchased Asahi Fire and Marine from Japanese bank Nomura for an estimated 45 billion Yen. This will be the first foray for Rakuten into the general insurance market and Asahi will become a wholly owned subsidiary. The company provides fire, automotive and accident insurance to consumer and corporate clients.
Rakuten's businesses and subsidiaries:
- Alpha Direct Services
- Crimson Football Club
- Daily Grommet
- Dot Commodity, Inc.
- Ebates Inc.
- Fits.Me Holdings Limited
- Keiba Mall, Inc.
- Kenko.com. Inc.
- LinkShare Japan K.K.
- Net's Partners, Inc.
- O-net, Inc.
- Priceminister S.A.S
- Rakuten Auction Inc.
- Rakuten AIP
- Rakuten Austria GmbH
- Rakuten Baseball, Inc.
- Rakuten Bank, Ltd.
- Rakuten Brazil Internet Service Ltda.
- Rakuten.co.uk (formerly Play.com)
- Rakuten Card Co., Ltd
- Rakuten Commerce
- Rakuten Communications Corp.
- Rakuten Coupon
- Rakuten Deutschland GmbH
- Rakuten Edy, Inc.
- Rakuten EMOBILE, Inc.
- Rakuten Enterprise Inc.
- Rakuten Europe Bank S.A.
- Rakuten India Enterprise Pvt.Ltd.
- Rakuten Insurance Planning Co., Ltd.
- Rakuten Investment Management, Inc.
- Rakuten Kobo Inc.
- Rakuten Life Insurance Co. Ltd.
- Rakuten LinkShare (formerly LinkShare Corporation)
- Rakuten Logistics, Inc.
- Rakuten Loyalty (formerly FreeCause)
- Rakuten Malaysia Sdn. Bhd.
- Rakuten Marketing
- Rakuten Mart
- Rakuten MediaForge, Inc.
- Rakuten OverDrive
- Rakuten Research, Inc.
- Rakuten Securities, Inc.
- Rakuten Shashinkan, Inc.
- Rakuten.com (formerly Buy.com)
- Rakuten ShowTime, Inc. (Japan)
- Rakuten Sociobusiness
- Rakuten Spain, SL
- Rakuten Travel, Inc.
- Shareee, Inc.
- Signature Japan Co., Ltd.
- Slice Technologies, Inc.
- Taiwan Rakuten Ichiba, Inc.
- TARAD Dot Com Co., Ltd.
- TicketStar Inc.
- Voyagin Co. Ltd.
- World Travel System
|February 1997||MDM, Inc. founded by Hiroshi Mikitani|
|May 1997||Internet shopping site Rakuten Ichiba is launched in Japan|
|June 1999||MDM, Inc. is renamed Rakuten, Inc.|
|April 2000||Rakuten goes public on the JASDAQ|
|October 2004||Rakuten Baseball is founded, and forms Tohoku Rakuten Golden Eagles in Nippon Professional Baseball|
|October 2005||Rakuten expands overseas for the first time, acquiring US-based LinkShare (later renamed Rakuten Marketing)|
|May 2008||Rakuten launches first e-commerce business outside Japan, with Taiwan Rakuten Ichiba||Joint venture with President Chain Store Corp|
|May 2010||Rakuten shifts focus to global services, with several acquisitions including US online marketplace Buy.com, later renamed Rakuten.com|
|November 2016||Signs a four-year €220 million deal for global sponsorship with Spanish football club FC Barcelona|
|September 2017||Signs sponsorship with NBA team Golden State Warriors for an estimated $60 million over 3 years|
In May 2013, some users on SlickDeals.net started complaining about alleged fraudulent charges on credit cards after using their cards on Rakuten.com. In some cases it was alleged that the victims' names, Social Security numbers, dates of birth and credit card information were used to open accounts at other online vendors. In response, Rakuten.com issued a statement that the company has undertaken significant measures to validate the security of the site, and that the results of a third-party investigation from a technical forensics company found no wrongdoing on their end.
In March 2014, UK-based Environmental Investigation Agency (EIA) named the company as the world's biggest online retailer of whale meat and elephant ivory, calling on the company to stop selling the items. In April 2014, Rakuten announced that it was ending all online sales of whale and dolphin meat by the end of the month. In July 2017, Rakuten announced that it was banning ivory sales on its sites.
- Vissel Kobe
- Tohoku Rakuten Golden Eagles
- Japan Open Tennis Championships
- Rakuten Institute of Technology
- Yukihiro Matsumoto
- "Info: Rakuten" - Rakuten Annual Reports for FY 2016
- "Gross Merchandise Sales & Number of Employees", Rakuten
- "expanding footprint reaches America." Retailing Today. 5 June 2013.
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- Stephanie Strom, "Online Overseas," New York Times, June 7, 2000.
- Phred Dvorak, "Japan's Highly Popular Rakuten Plans IPO Despite Shaky Market," Wall Street Journal, April 18, 2000.
- Michiyo Nakamoto, “Rakuten agrees to purchase Aozora Card,” Financial Times, August 30, 2004.
- Kiyoe Minami and Chana R. Schoenberger, "A Taste of What's in Store," Forbes, July 11, 2008.
- Hiroko Tabuchi, "As War for Web Messaging Users Grows, Rakuten Buys Viber for $900 Million," New York Times, February 14, 2014.
- "Rakuten to hold all formal internal meetings in English | The Japan Times Online". Search.japantimes.co.jp. 2010-05-18. Retrieved 2011-10-04.
- "Rakuten to make English official language inside company by end of 2012", The Mainichi Daily News, July 1, 2010 (archived 2010)
- Mayumi Negishi, "Japan's Rakuten Set to Buy U.S. Shopping Website Ebates," Wall Street Journal, September 7, 2014.
- Patience Haggin, "Why a Japanese E-Tailer Requires Workers to Speak English," Wall Street Journal, October 2, 2016.
- Takashi Mochizuki, "Rakuten Starts Accepting Bitcoin," Wall Street Journal, March 16, 2015.
- "Rakuten ups its brand game with €220m Barcelona sponsorship," Financial Times, November 16, 2016.
- Shotaro Tani, "Japan's Rakuten seeks reboot through online gaming," Nikkei Asian Review, April 4, 2017.
- "Rakuten wants to disrupt the App Store," Business Insider, April 5, 2017.
- Darren Rovell, "Warriors sign jersey-patch advertising deal with Rakuten," ESPN, September 12, 2017.
- Corkery, Michael. "Walmart Makes a Late Entry into the E-Book Market". The New York Times. The New York Times. Retrieved 26 January 2018.
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- "Rakuten, Leading Japanese E-Commerce Portal, to Acquire LinkShare, Leading U.S. Performance-Based E-Commerce Company", PR Newswire, September 5, 2005
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- Ozon.ru wins biggest Russian e-commerce investment, Reuters news agency, 8 September 2011.Retrieved: 27 December 2012.
- "японская школа торговли". Expert Magazine, Russia.
- Trout, Christopher, "Rakuten signs agreement to purchase Kobo", Engadget, Nov 8th 2011
- Martin, Rick, "Japanese Online Retail Giant Rakuten Set to Acquire eBook Service Kobo", Penn-Olson reports, November 9, 2011
- "Indigo Announces Completion of Kobo Sale", Bloomberg, Jan 11th 2012
- "Exclusive: Japan’s Rakuten Wins the Heart of Pinterest in $100M Funding Race With $1.5B Valuation", All things digital, 17 May 2012
- Paul Sawers, "How Japanese ecommerce giant Rakuten is pushing its brand in the West," VentureBeat, July 24, 2017.
- "Rakuten adquiere Wuaki.tv [Spanish]" Archived 2012-06-15 at the Wayback Machine., Wuaki.tv Blog, 17 June 17, 2012.Retrieved 27 December 2012
- Rakuten Acquires Alpha Direct Services, Rakuten corporate blog, 7 November 2012.Retrieved 27 December 2012
- "Kobo Acquires Aquafadas to bring more Comics and Kids Books into Digital Form". goodereader.com. Retrieved 2015-06-01.
- Japan's Rakuten Ups Its Stake in the Rebranded Grommet - Kara Swisher - Commerce. AllThingsD (2013-05-14). Retrieved on 2013-09-19.
- Online Marketplaces - Don’t call me ‘daily’: The Grommet drops the chronological element in its rebranding. Internet Retailer. Retrieved on 2013-09-21.
- Rakuten Acquires U.S.-based Logistics Company Webgistix | | Fulfilling eCommerce. Webgistix.com (2013-06-05). Retrieved on 2013-09-19.
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- "Japanese Internet Giant Rakuten Acquires Viber For $900M". TechCrunch. February 13, 2014. Retrieved February 14, 2014.
- "Rakuten Marketing Acquires DC Storm for Omni-channel Attribution, Measurement and Tag Management". Reuters. May 29, 2014. Retrieved June 4, 2014.
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- Jon Russell, "Rakuten Buys Japanese Soccer Team Vissel Kobe, Mirroring Recent Alibaba Move," TechCrunch, December 7, 2014.
- "Rakuten to Buy OverDrive". PublishersWeekly.com. Retrieved 2017-02-26.
- Mike Isaac, "Hiroshi Mikitani, Rakuten Founder, Joins Lyft's Board," New York Times, June 23, 2015.
- Bruce Einhorn, "Japan's Rakuten is dreaming big," Seattle Times, April 12, 2015.
- Yoko Kubota, "Rakuten Raises Investment in Latin America Ride-Hailing App Cabify," Wall Street Journal, April 19, 2016.
- Ingrid Lunden, "Uber rival Careem closes $500M raise at $1B+ valuation as Daimler steps in," TechCrunch, June 14, 2017.
- Katie Roof, "PayPal leads $30 million round in Acorns investing app," TechCrunch, April 21, 2016.
- Jon Russell, "Rakuten buys struggling bitcoin startup to create a 'blockchain research lab'," TechCrunch, August 18, 2016.
- Jon Russell, "Rakuten invests $2.8M in 'Airbnb for business travel' startup MetroResidences," TechCrunch, April 10, 2017.
- https://www.japantimes.co.jp/news/2018/01/29/business/corporate-business/rakuten-buys-asahi-fire-marine-insurance-nomura-holdings-%C2%A545-billion/#.WnjMX6hl_D4, Rakuten buys Asahi Fire & Marine Insurance from Nomura Holdings for Y45 billion - Japan Times
- Malik, David (March 2, 2018). "Rakuten to launch e-commerce cryptocurrency".
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- Justin McCurry, "Japan's biggest online retailer, Rakuten, ends whale meat sales," The Guardian, April 4, 2014.
- "Japan's Rakuten retail site bans ivory sales," BBC News, July 7, 2017.
- Global Rakuten (in English)
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