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Kobo, a prominent e-reading platform managed by Rakuten, relies excessively on third parties for its software operations.

Kobo's excessive dependence on external software providers, including Dropbox, Overdrive, Pocket, and device repair services, is causing troubles for the company.

Rakuten Kobo's e-reading software heavily relies on multiple third-party entities.
Rakuten Kobo's e-reading software heavily relies on multiple third-party entities.

Kobo, a prominent e-reading platform managed by Rakuten, relies excessively on third parties for its software operations.

In the world of e-readers, two major players stand out: Rakuten Kobo and Amazon Kindle. While both companies offer digital reading solutions, their approaches to business and technology differ significantly.

Rakuten Kobo, an open platform, emphasises collaboration and support for various file formats and international markets. This strategy involves integrating external software and systems from numerous third-party partners, a move that broadens Kobo's reach and capabilities [2][4]. This approach aligns with Rakuten's broader marketplace approach, where partnerships and collaborations are integral to their diverse e-commerce ecosystem [3][5].

On the other hand, Amazon's Kindle platform is known for its proprietary technology stack and integrated ecosystem. Amazon designs and controls the hardware (Kindle devices), software, content delivery, and digital rights management, enabling the company to optimize performance, user experience, and marketplace control without relying heavily on third-party software vendors [4].

Here's a side-by-side comparison:

| Aspect | Rakuten Kobo | Amazon Kindle | |-------------------------|------------------------------------|-----------------------------------| | Business model | Open platform; collaborative; supports multiple file formats and sellers | Vertically integrated; proprietary hardware/software | | Technology reliance | Heavy dependence on third-party software and partnerships| Mostly in-house development of tools and systems | | Market focus | International markets, diverse content sources | Primarily U.S.-centric with tightly controlled ecosystem | | Strategic advantage | Flexibility, openness, market breadth | Control, optimization, seamless user experience |

The recent closure of Mozilla Pocket, a reading app used by Rakuten Kobo for web articles, has posed challenges for Kobo. No replacement for Mozilla Pocket has been announced, and the incident underscores the potential risks of Kobo's partnership-based strategy [6][7].

In contrast, Amazon operates Kindle Direct Publishing, the world's largest self-publishing platform, and offers the popular feature 'Send to Kindle', which allows users to send e-books to all Kindle devices, Fire Tablets, or Kindle apps [1]. Amazon is also the largest e-reader company in the world [8].

Amazon's acquisition of Comixology, a popular digital comics app, further bolsters its position in the e-reader market [1].

Rakuten Kobo, however, does not develop any new or unique software for their Linux e-readers, instead relying on third-party partnerships for their e-reader software [2]. This strategy may offer short-term benefits but could potentially lead to long-term risks, as demonstrated by the closure of Mozilla Pocket [7].

In terms of device repairs, iFixit is used for Rakuten Kobo devices, while Goodreads, a social book discovery site, is available on every Kindle e-reader [9].

As the e-reader market continues to evolve, the strategies of these two companies will undoubtedly shape the future of digital reading.

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