History of Rakuten in Timeline
Rakuten Group, Inc., headquartered in Tokyo, is a prominent Japanese technology conglomerate founded in 1997 by Hiroshi Mikitani. The company's diverse business portfolio revolves around its flagship e-commerce platform, Rakuten Ichiba, often dubbed the "Amazon of Japan." Rakuten's operations extend to financial services leveraging Fintech, digital content and communication services, including Viber (messaging app), Kobo (e-book distributor), and Rakuten Mobile, Japan's fourth-largest mobile carrier. With a global workforce exceeding 28,000 employees across 30 countries and regions, Rakuten generated US $12.8 billion in revenue as of 2021. The company's influence extends to sports sponsorships, notably as the official sponsor of FC Barcelona (2017-2022) and, currently, the Golden State Warriors.
February 1997: Founding of MDM, Inc.
Hiroshi Mikitani established MDM, Inc., the precursor to Rakuten, in February 1997.
May 1, 1997: Launch of Rakuten Shopping Mall
On May 1, 1997, Rakuten officially launched its online shopping marketplace, Rakuten Shopping Mall (Rakuten Ichiba). At its launch, the website featured 13 merchants and was managed by a team of six employees.
1997: Rakuten Founded, Focuses on E-Commerce
Founded in 1997, Rakuten initially concentrated on the e-commerce sector. Over the years, the company expanded its reach through strategic acquisitions in various fields, including sports, banking, and insurance.
June 1999: Name Change to Rakuten
MDM, Inc. was renamed "Rakuten" in June 1999, taking on the meaning "optimism" from the Japanese word.
April 19, 2000: Rakuten Goes Public
Rakuten went public on April 19, 2000, with an IPO on the JASDAQ market. At the time, the Rakuten online marketplace hosted 2,300 stores and garnered 95 million monthly page views, establishing it as one of Japan's leading websites.
March 2001: Launch of Rakuten Travel
In March 2001, Rakuten expanded its services by launching Rakuten Travel, an online hotel reservation platform.
April 2002: New Merchant System Implementation
Rakuten introduced a new system for its merchants in April 2002, integrating monthly fixed fees with sales commissions.
September 2004: Acquisition of Aozora Card Co., Ltd.
Rakuten expanded its financial service offerings in September 2004 by acquiring Aozora Card Co., Ltd., a consumer finance company, later renaming it to Rakuten Card Co., Ltd.
October 2004: Formation of Tohoku Rakuten Golden Eagles Baseball Team
In October 2004, Rakuten established Rakuten Baseball and subsequently formed the Tohoku Rakuten Golden Eagles baseball team, which joined Nippon Professional Baseball.
December 2005: Establishment of Rakuten Institute of Technology
Rakuten founded the Rakuten Institute of Technology in Tokyo in December 2005, dedicated to research and development endeavors.
2005: International Expansion Begins
Rakuten commenced its expansion beyond Japan in 2005, primarily through acquisitions and joint ventures.
2005: Introduction of the Rakuten Credit Card
Rakuten debuted its own credit card in 2005, further solidifying its presence in the financial services domain.
2010: Rakuten Mandates English as Official Language
In 2010, CEO Hiroshi Mikitani implemented a company-wide policy mandating the use of English for all business operations, from meetings to internal communication. This initiative aimed to enhance global communication and faced both support and criticism.
2011: Significant Expansion Outside Japan
Around 2011, Rakuten significantly amplified its international expansion efforts. Notable actions during this period included acquiring a stake in Canadian e-book manufacturer Kobo Inc. and investing in Pinterest.
2011: Launch of Rakuten Belanja Online in Indonesia
Rakuten introduced Rakuten Belanja Online in Indonesia in 2011, expanding its e-commerce presence in Southeast Asia.
2012: Expansion in Online Retail and Travel Markets & Adoption of English as Official Language
By late 2012, Rakuten had established its presence in online retail across Austria, Canada, Spain, Taiwan, and Thailand. Concurrently, it penetrated online travel markets in France with Voyager Moins Cher.com and expanded its reach in China, Hong Kong, Korea, and Taiwan through its Tokyo-based international Rakuten Travel platform. In North America, Rakuten Golf enabled online tee time bookings. To enhance its global standing and inclusivity, Rakuten declared English as its official language in 2012.
2012: Rakuten Claims Success in English Language Policy
In 2012, Rakuten declared its English language policy a success, though specific details were not provided.
2012: Kobo Touch eReader Launch in Japan Met with Criticism
The July 17, 2012, launch of the Kobo Touch eReader in Japan faced significant backlash due to technical issues and functionality problems, leading to negative customer reviews and Rakuten temporarily disabling product reviews.
2012: Kobo e-Bookstore Launch Marred by Controversy
The launch of the Kobo e-bookstore in July 2012 was met with criticism over discrepancies in the advertised number of Japanese titles. CEO Hiroshi Mikitani's public statements about reaching specific book availability targets also drew scrutiny, leading to an investigation by the Consumer Affairs Agency. The inclusion of repackaged Wikipedia articles further fueled controversy.
2013: Rakuten's 77% Off Sale Raises Concerns Over Artificial Price Hikes
In November 2013, Rakuten hosted a site-wide sale with discounts of up to 77% to celebrate a Tohoku Rakuten Golden Eagles championship win. However, it was discovered that numerous vendors had artificially inflated prices before the sale, leading to an investigation by the Consumer Affairs Agency. Rakuten initially denied responsibility but later admitted that some employees had encouraged vendors to raise prices.
March 2014: EIA Calls Out Rakuten for Sale of Whale Meat and Ivory
In March 2014, the Environmental Investigation Agency (EIA) exposed Rakuten as a major online retailer of whale meat and elephant ivory, urging the company to cease these sales.
April 2014: Rakuten Bans Whale and Dolphin Meat Sales
In response to pressure from the EIA and public outcry, Rakuten announced in April 2014 that it would stop selling whale and dolphin meat on its platform by the end of the month.
September 2014: Acquisition of Ebates
Rakuten acquired Ebates for $1 billion in September 2014, venturing into the online shopping membership rewards market in Canada, China, Russia, South Korea, and the United States.
2014: Rakuten Accused of Artificially Inflating MSRPs
In 2014, Rakuten faced allegations of instructing vendors to artificially inflate manufacturer's suggested retail prices (MSRPs) to make discounts appear more significant during sales. The Consumer Affairs Agency investigated these practices, classifying them as potential violations of consumer protection laws, and Rakuten issued an apology.
January 2015: Acquisition of Vissel Kobe Football Club
Rakuten ventured into the realm of professional football in January 2015 by acquiring Vissel Kobe, a prominent J1 League team established in 1995.
March 2015: Acceptance of Bitcoin and Relocation of Headquarters
Rakuten announced in March 2015 its acceptance of Bitcoin as a form of payment across its global marketplaces. This followed an investment in Bitnet Technologies, a San Francisco-based Bitcoin payments processing startup. Rakuten also relocated its headquarters to the Tamagawa neighborhood of Setagaya-ku from Shinagawa in the same year, consolidating its Tokyo offices to accommodate future expansion.
2015: Rakuten Employees Achieve High TOEIC Scores
By 2015, Rakuten employees demonstrated significant progress in English proficiency, achieving an average TOEIC score of 802.6 out of 990, indicating advanced proficiency.
November 2016: Growth of Rakuten Card and Launch of Rakuten Pay
By November 2016, Rakuten Card had been adopted by over 13 million users. The financial services sector, encompassing Japan's largest internet bank and third-largest credit company under Rakuten's umbrella, contributed to nearly 40% of Rakuten's revenue. This period also saw the introduction of Rakuten Pay, a smartphone-based payment system.
November 16, 2016: Partnership with FC Barcelona
Rakuten secured a four-year partnership with FC Barcelona, a renowned La Liga football club, on November 16, 2016. This agreement positioned Rakuten as FC Barcelona's primary global partner commencing from the 2017-18 season, with the brand's name prominently displayed on match-day jerseys. The deal, valued at a minimum of €220 million, included an option for a one-year extension.
2016: Increase in Non-Japanese Engineers
By 2016, almost 40% of Rakuten's engineering workforce in Japan comprised non-Japanese individuals, reflecting its increasingly global workforce composition.
2016: Closure of Retail Websites and Loss of Market Leadership in Japan
Rakuten shut down several of its retail websites in 2016, including those in the UK, Spain, Austria, Singapore, Indonesia, and Malaysia. During this year, it also relinquished its longstanding position as Japan's largest e-commerce site to Amazon Japan.
February 2017: Acquisition of Shopstyle and Collective
Ebates, in conjunction with Rakuten, acquired Shopstyle and its influencer marketing division, Collective, in February 2017, strategically expanding into fashion curation, product discovery, and search.
April 2017: Launch of R Games Platform
In April 2017, Rakuten launched R Games, an online social gaming platform, in collaboration with Blackstorm Labs, a California-based company. This platform debuted with 15 free-to-play games optimized for smartphones, featuring titles like Pac-Man and Space Invaders. Built using HTML5 for cross-device compatibility, R Games aimed to leverage Rakuten's extensive database of 114 million online shoppers. There were also plans to integrate R Games with Viber, Rakuten's messaging app.
July 2017: Rakuten Bans Ivory Sales
Continuing its efforts to address ethical concerns, Rakuten expanded its ban to include ivory sales in July 2017.
September 2017: Sponsorship of the Golden State Warriors
Rakuten secured a three-year sponsorship deal worth $60 million with the Golden State Warriors of the NBA in September 2017, becoming the official sponsor for the jersey patch displayed on the front of the team's uniforms.
2017: Rakuten Implements Measures to Prevent Price Manipulation
Following the 2013 price hike controversy, Rakuten faced criticism for its handling of the situation, particularly its reluctance to name the vendors involved. The company implemented a monitoring system to prevent similar incidents and issued an apology to the public.
2017: Commencement of FC Barcelona Partnership
Rakuten's partnership with FC Barcelona commenced in the 2017-18 season, marking a significant venture into sports sponsorship.
January 2018: Partnership with Walmart for E-books
Rakuten collaborated with Walmart in January 2018 in a strategic move to bolster its e-book offerings.
May 2018: Announcement of Rakuten Mobile
Rakuten revealed its plans to launch Rakuten Mobile, Japan's fourth wireless mobile network, in May 2018, further diversifying its business portfolio.
June 2018: Acquisition of Curbside
Ebates, alongside Rakuten, acquired Curbside in June 2018 to enhance its online-to-offline (O2O) offerings for both members and merchants.
September 2019: Rakuten Acquires Lamigo Monkeys
In September 2019, Rakuten acquired the Taiwanese baseball team, the Lamigo Monkeys, marking the first time a foreign company owned a Chinese Professional Baseball League team.
December 2019: Lamigo Monkeys Renamed Rakuten Monkeys
On December 17, 2019, the Lamigo Monkeys were officially renamed the Rakuten Monkeys, and new uniforms were unveiled, drawing inspiration from the Tohoku Rakuten Golden Eagles' design.
July 2020: Rakuten Closes U.S. Marketplace
In July 2020, Rakuten announced the closure of its U.S. online marketplace, previously known as Buy.com. The platform stopped accepting new orders on September 15 and fully shut down after fulfilling all outstanding orders.
September 2020: Rakuten Launches 5G Network in Japan
Following the launch of its 4G services in April, Rakuten rolled out its 5G network in select areas of Japan in September 2020.
September 24, 2020: Rakuten Announces Closure of German Marketplace
On September 24, 2020, Rakuten announced that it would be shutting down its online marketplace in Germany.
October 15, 2020: Rakuten Stops Taking New Orders on German Marketplace
As of October 15, 2020, Rakuten no longer accepted new orders on its German Marketplace, but committed to fulfilling all orders placed before that date.
March 2021: Rakuten Partners with Japan Post Holdings
In March 2021, Rakuten announced a significant capital alliance with Japan Post Holdings, allotting them over 8% stake for 150 billion yen. This partnership made Japan Post Holdings the third-largest shareholder, aiming to strengthen Rakuten's financial capacity to compete with Amazon Japan.
2021: Rakuten Expands Rakuten Communications Platform (RCP) Internationally
By 2021, Rakuten had secured at least fifteen international customers for its RCP technology, which leverages cloud computing to offer competitive pricing.
February 2022: Rakuten Founder Donates to Ukraine Humanitarian Efforts
In February 2022, Hiroshi Mikitani, the founder of Rakuten, made a personal donation of ¥1 billion ($8.7 million) to support humanitarian aid in Ukraine following the Russian invasion.
2023: Rakuten Partners with Supermicro
In 2023, Rakuten partnered with Supermicro, a leader in high-performance computing solutions, to develop advanced Open RAN technologies and storage systems. This collaboration aims to benefit operators of cloud-based mobile services.
2023: Rakuten and Stephen Curry Team Up for Charity Shopping Spree
In 2023, Rakuten partnered with basketball star Stephen Curry to host a special shopping event for twenty Bay Area children at the Warriors Shop in Chase Center. Curry actively participated in the event, surprising the children by posing as a team shop employee and assisting them in finding sports gear.
