Rakuten

Rakuten
Name	Rakuten
Type	Public
Traded as	TYO: 4755
Industry	E-commerce, Internet, Retail
Founded	January 7, 1997; 27 years ago
Founder	Hiroshi Mikitani
Headquarters	Tokyo, Japan

Rakuten is a Japanese multinational e-commerce and internet company founded by Hiroshi Mikitani in 1997. The company is headquartered in Tokyo, Japan, and has grown to become one of the country's largest e-commerce platforms. Rakuten operates a variety of businesses, including e-commerce, online marketplaces, and financial services. The company has expanded globally, with a presence in several countries, including the United States, China, and Europe.

History

Rakuten was founded in 1997 by Hiroshi Mikitani, who is still the company's president and CEO. Initially, the company focused on providing online shopping and auction services. In 2000, Rakuten launched its e-commerce platform, which quickly gained popularity in Japan. The company went public in 2004, listing on the Tokyo Stock Exchange. Over the years, Rakuten has expanded its business through strategic acquisitions and partnerships, including the purchase of Viber in 2014 and Bitlink in 2018.

Business model and services

Rakuten operates a business-to-consumer (B2C) and consumer-to-consumer (C2C) e-commerce platform, allowing individuals and businesses to buy and sell goods online. The company also provides a range of financial services, including credit cards, loans, and insurance. Additionally, Rakuten offers online travel booking services, digital content, and cloud computing services. The company's platform is used by millions of users worldwide, with a strong presence in Asia and growing operations in Europe and the Americas.

Corporate affairs and leadership

Rakuten is led by Hiroshi Mikitani, who serves as president and CEO. The company's board of directors includes several experienced executives, including Terry Okano, who serves as executive vice president and CFO. Rakuten has a strong commitment to innovation and has established several research and development centers around the world, including in Silicon Valley and Singapore. The company has also partnered with several leading universities, including University of Tokyo and Stanford University, to advance research in areas such as artificial intelligence and data science.

Financial performance

Rakuten has reported strong financial performance in recent years, with revenue growing to over ¥1 trillion in 2022. The company's e-commerce business has been a key driver of growth, with sales increasing by over 20% in 2022. Rakuten's financial services business has also performed well, with profits increasing by over 30% in 2022. The company's global expansion efforts have also contributed to its financial growth, with revenue from overseas operations increasing by over 50% in 2022.

Global expansion and acquisitions

Rakuten has expanded globally through strategic acquisitions and partnerships. In 2014, the company acquired Viber, a popular messaging app with over 200 million users worldwide. Rakuten has also acquired several other companies, including Bitlink, a Japanese e-commerce company, and Frengo, a Swedish mobile marketing firm. The company has also established partnerships with several leading companies, including Amazon, Google, and Microsoft, to expand its global reach.

Criticism and controversies

Rakuten has faced criticism and controversy in several areas, including its business practices and regulatory compliance. In 2020, the company was fined by the Japanese government for violating antitrust regulations. Rakuten has also faced criticism for its treatment of contract workers, with some workers alleging that they are not receiving fair compensation or benefits. The company has also faced challenges related to cybersecurity, with several high-profile data breaches reported in recent years.

Category:Japanese e-commerce companies