ecommerce Economics

Rakuten vs SoftBank + Yahoo vs Amazon (Bloomberg and BusinessWeek interviews)

Rakuten vs Softbank

Yahoo reduces e-commerce fees to compete harder with Rakuten’s online mall

Bloomberg interview and BusinessWeek interview about Yahoo KK’s aggressive reduction of ecommerce fees, a move increasing competition with and Rakuten.

How do you see Yahoo KK’s latest move to reduce or eliminate merchant’s fees? Do you see this as an attack by SoftBank/Yahoo on Rakuten?

SoftBank and Rakuten are clearly two very different companies – they don’t compete on the same ground. SoftBank is a telecom company with a Government spectrum license – a quasi-monopoly on a certain wavelength spectrum. Rakuten has no such monopoly, but is an internet based ecommerce company.

How do you see the future of Rakuten now?

Rakuten is clearly squeezed between SoftBank/Yahoo on one side and on the other side.’s Jeff Bezos, SoftBank/Yahoo-KK’s Masayoshi Son and Rakuten’s Hiroshi Mikitani are clearly some of the most brilliant minds on this planet earth, so any battle between these three is phenomenal.

You ask about Hiroshi Mikitani/Rakuten – he clearly has his job cut out to compete with Masayoshi Son and Jeff Bezos – that’s not easy at all.

In particular, has a lot of strengths in areas, where Rakuten does not compete, e.g. AWS – Amazon Web Services, which is a very important cloud services company.

In terms of globalization, I also see challenges ahead for Rakuten. Even though Rakuten has recently decided to train staff in English conversation, its not a trivial job for an essentially Japanese company to globalize.

How do you see globalization of Rakuten and Softbank?

SoftBank clearly has taken a big step in acquiring Sprint in USA. SoftBank’s very big challenge is now to make Sprint a very big success and this will take some time.
Rakuten also has a huge challenge to globalize, and it will be interesting to see if Rakuten can become a global company

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