Amazon has maintained its e-reader market leadership through Kindle which operates with Amazon's complete retail system since its introduction. Yet a growing segment of dedicated readers is migrating to devices made by Rakuten under its Kobo brand. Customers choose between the two companies because they prefer how each company approaches their business operations and product development.
Kobo devices natively support the EPUB file format which serves as the worldwide publishing standard used by independent bookstores and digital distributors. Kindle devices historically relied on proprietary AZW and KFX formats. Amazon now permits EPUB uploads through Send-to-Kindle although it transforms the submitted files into its cloud storage system. On Kobo, EPUB remains EPUB. Users who purchase from various stores need this distinction to handle their collections of Project Gutenberg classics and DRM-free libraries. Kobo operates as a universal reading device which users can control instead of a restricted retail space.