Kobo fights Amazon with the one thing it has that the giant doesn't: friends

The Aura HD is a great bit of hardware, but that's not where the battle of ereaders is being fought.

The 2003 film The Corporation assess the idea of corporate personhood, the legal fiction that allows companies to exist, and argues that the structures that keep them in place compel them to act in a way that, it claims, is psychopathic. But the partnerships displayed at the launch last night of e-reading company Kobo's new Aura HD device will hopefully end up disproving the claim. That, or there are a lot more sheep signing strategic deals with wolves than I thought.

Kobo is in town for the London Book Fair, and used the opportunity to launch its new ereader. The tech itself is fancy as hell: described by the company as being designed from the ground up for "passionate" readers, it's got an ultra-high resolution screen (slightly sharper than an iPad 4's, though at that stage, who's counting?), sharp industrial design, and a speedy processor that makes it feel faster than any e-ink reader I've used before. It's also got everything that we've come to expect as standard: a backlit touchscreen, wireless syncing, a built-in dictionary, optional fonts, and so on.

But it was the build-up to the announcement – a Steve Jobs-inspired "one more thing" at the end of a press conference – that I found most interesting. The elephant in the room was, clearly, Amazon, whose Kindle reader dominates the market. But the way Kobo is choosing to fight that dominance suggests a level of trust between companies which is rare to find in an industry as cutthroat and rapidly changing as this one.

Amazon is the business you don't want on your turf. Matt Yglesias described it as "a charitable organization being run by elements of the investment community for the benefit of consumers" and he's not far off. If it decides to compete with you, your options are dramatically limited: you can't undercut it, because it doesn't care about profits. You can't live in an under-served niche, because Amazon's scale lets it serve every sector out there. And you can't really pivot into a new business, because if you can, Amazon can too – and will.

But Kobo's strategy seems to be make use of the one thing Amazon doesn't have: friends. The distinction is clearest when it comes to retail partners. Stephen Clarke, the CEO-designate of WHSmith's, spoke about the chain's working relationship with Kobo. Following what he described as an "interesting courtship" – "a little bit of falling out, a little bit of hissy fitting, a little bit of 'it's not me it's you'" – the two companies are now selling Kobo readers in a shop-within-a-shop in WHSmith's Oxford Street branch, and plan to expand that to 100 shops around the country. And the deal is reciprocal: while Kobo gets to sell in WHSmith locations, the latter now has a white-label ebookstore where customers can buy Kobo books.

That's a far cry from Amazon's relationship with brick-and-mortar retailers, which is basically to make them cry. But there's also less of an air of menace in Kobo's relationship with publishers. That's a group which Amazon needs to keep onside – for now – because they do make most of the books which the company sells. But the company has made no secret of its desire to be a publisher itself, and has made several aggressive moves into the sector.

Again, contrast that with the presence of Stephen Page, the CEO of Faber and Faber, at the launch. Page spoke about his company's transformation as a result of the internet, with particular focus on the conversation it lets happen with readers. A data-sharing agreement has been worked out, and the two companies seem to be going forward with a far less passive-aggressive relationship than many.

But even if everything is smiles now, can it last? Kobo's CEO, Michael Serbinis, spoke about his expectation that the transition to ebooks would be a 25 year change. Big transformations have happened already, even in the three years the company's been working with WHSmith, but we still don't know what the end stage looks like.

Retailers clearly hope there is a space for them in that future, and Kobo is eager to convince them that's the case. But it's hard to believe that there won't be some point where the latter finds it easier to go alone – and when that comes, will a history of friendship mean anything at all?

The Kobo Aura HD. Photograph: Kobo

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty Images
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No, IDS, welfare isn't a path to wealth. Quite the opposite, in fact

Far from being a lifestyle choice, welfare is all too often a struggle for survival.

Iain Duncan Smith really is the gift that keeps on giving. You get one bile-filled giftbag of small-minded, hypocritical nastiness and, just when you think it has no more pain to inflict, off comes another ghastly layer of wrapping paper and out oozes some more. He is a game of Pass the Parcel for people who hate humanity.
For reasons beyond current understanding, the Conservative party not only let him have his own department but set him loose on a stage at their conference, despite the fact that there was both a microphone and an audience and that people might hear and report on what he was going to say. It’s almost like they don’t care that the man in charge of the benefits system displays a fundamental - and, dare I say, deliberate - misunderstanding of what that system is for.
IDS took to the stage to tell the disabled people of Britain - or as he likes to think of us, the not “normal” people of Britain -  “We won’t lift you out of poverty by simply transferring taxpayers’ money to you. With our help, you’ll work your way out of poverty.” It really is fascinating that he was allowed to make such an important speech on Opposite Day.
Iain Duncan Smith is a man possessed by the concept of work. That’s why he put in so many hours and Universal Credit was such a roaring success. Work, when available and suitable and accessible, is a wonderful thing, but for those unable to access it, the welfare system is a crucial safety net that keeps them from becoming totally impoverished.
Benefits absolutely should be the route out of poverty. They are the essential buffer between people and penury. Iain Duncan Smith speaks as though there is a weekly rollover on them, building and building until claimants can skip into the kind of mansion he lives in. They are not that. They are a small stipend to keep body and soul together.
Benefits shouldn’t be a route to wealth and DWP cuts have ensured that, but the notion that we should leave people in poverty astounds me. The people who rely on benefits don’t see it as a quick buck, an easy income. We cannot be the kind of society who is content to leave people destitute because they are unable to work, through long-term illness or short-term job-seeking. Without benefits, people are literally starving. People don’t go to food banks because Waitrose are out of asparagus. They go because the government has snipped away at their benefits until they have become too poor to feed themselves.
The utter hypocrisy of telling disabled people to work themselves out of poverty while cutting Access to Work is so audacious as to be almost impressive. IDS suggests that suitable jobs for disabled workers are constantly popping out of the ground like daisies, despite the fact that his own government closed 36 Remploy factories. If he wants people to work their way out of poverty, he has make it very easy to find that work.
His speech was riddled with odious little snippets digging at those who rely on his department. No one is “simply transferring taxpayers’ money” to claimants, as though every Friday he sits down with his card reader to do some online banking, sneaking into people’s accounts and spiriting their cash away to the scrounging masses. Anyone who has come within ten feet of claiming benefits knows it is far from a simple process.
He is incredulous that if a doctor says you are too sick to work, you get signed off work, as though doctors are untrained apes that somehow gained access to a pen. This is only the latest absurd episode in DWP’s ongoing deep mistrust of the medical profession, whose knowledge of their own patients is often ignored in favour of a brief assessment by an outside agency. IDS implies it is yes-no question that GPs ask; you’re either well enough to work or signed off indefinitely to leech from the state. This is simply not true. GPs can recommend their patients for differing approaches for remaining in work, be it a phased return or adapted circumstances and they do tend to have the advantage over the DWP’s agency of having actually met their patient before.
I have read enough stories of the callous ineptitude of sanctions and cuts starving the people we are meant to be protecting. A robust welfare system is the sign of a society that cares for those in need. We need to provide accessible, suitable jobs for those who can work and accessible, suitable benefits for those who can’t. That truly would be a gift that keeps giving.