Chegg
Chegg, Inc., is an American education technology company based in Santa Clara, California. It provides homework help, digital and physical textbook rentals, textbooks, online tutoring, and other student services.[2]
| Type of business | Public company |
|---|---|
| Traded as |
|
| Founded | July 2006 |
| Headquarters | Santa Clara, California, U.S. |
| Founder(s) | Aayush Phumbhra Osman Rashid Josh Carlson |
| Key people | Dan Rosensweig, Chairman, president and CEO |
| Industry | Education Online retailing |
| Products | Online textbook rental eTextbooks Online learning Online tutoring Networking |
| Revenue | US$767 million (2022) |
| Operating income | US$8.96 million (2022) |
| Net income | US$267 million (2022) |
| Total assets | US$2.47 billion (2022) |
| Total equity | US$1.12 billion (2022) |
| Employees | 2,071 (Dec 2022) |
| Subsidiaries | Busuu Chegg Tutors Zinch StudyBlue Notehall Cramster |
| URL | chegg |
| [1] | |
The company was launched in 2006, and began trading publicly on the New York Stock Exchange in November 2013. As of March 2020, the company reported having 2.9 million subscribers to Chegg Services.[3] The services provided by Chegg have been controversial because there have been reports of student cheating using Chegg services.
History edit
2000s edit
In October 2000, Iowa State University students Josh Carlson, Mike Seager, and Mark Fiddleke launched Chegg's forerunner, Cheggpost, a Craigslist-style message board for Iowa State students.[4][5] Chegg is a combination of the words chicken and egg, and references the founders’ catch-22 feeling of being unable to obtain a job without experience, while being unable to acquire experience without a job.[6]
Carlson then teamed with Iowa State MBA Osman Rashid, an avid user of the site who recognized its potential to disrupt the textbook market, which had "drastically outpaced the rate of inflation".[7] The company was incorporated in 2005 by Carlson, Rashid, and Aayush Phumbhra.[5] At that time, it offered scholarship searches, internship matching, and college application advice.[2] Some initial start-up funding was provided by Rashid.[8]
In February 2006, Carlson left the company.[8] Phumbhra and Rashid rebranded, launching Chegg, Inc. in December 2007, with Rashid as CEO. After ending services unrelated to renting and purchasing textbooks,[5] the company adjusted its business model to reflect that of Netflix's rental-based model, concentrating on renting textbooks to students,[6][9] and Chegg expanded to a national market.[10] It later added goods and student services through corporate acquisitions.[10]
In 2008, revenues were about $10 million; in 2009, revenues for the month of January were reported as $10 million.[11]
2010s edit
Following a brief tenure by former Ask.com and Match.com CEO Jim Safka in 2009,[12] former Guitar Hero CEO Dan Rosensweig was appointed CEO in 2010.[13][14]In 2010, Omar Rashid created a marketing program in cooperation with students from SUNY Caton to launch the textbook company in the rental market as opposed to purchases awhile he continued to make pitches to an Asian investor group that also invested in an online marketing company named that issues digital coupons for stores to take the company public.
Chegg began trading shares publicly on the New York Stock Exchange in November 2013.[15] Its IPO was reported to have raised $187.5 million, with an initial market capitalization of about $1.1 billion.[16]
In 2014, Chegg entered a partnership with book distributor Ingram Content Group to distribute all of Chegg's physical textbook rentals.[17][18]
In April 2017, Chegg and Pearson Education began a textbook rental partnership;[19] In the pilot program, the publisher Pearson made 50 editions of high-volume textbooks (both digital and print) available only to rent. Chegg served as the exclusive rental outlet.[19]
In September 2018, Chegg announced a data breach had occurred in April 2018 that may have involved 40 million active and inactive registered users. The breach may have included data such as user names, Chegg passwords, email addresses, and shipping addresses. The company reported that social security numbers and bank account information were not affected by the breach.[20]
2020s edit
As of March 2020, the company reported having 2.9 million subscribers to Chegg Services.[3] Chegg experienced significant growth during the COVID-19 pandemic, experiencing a triple-digit rise on the stock market that was credited to the rise of distance education during the pandemic.[15] In 2021, Chegg was declared the "most valuable edtech company in America" by Forbes.[7]
In June 2021, Chegg unveiled Uversity, a new educational platform that will provide a space for professors and other educators to share content.[21] In the same year, Chegg partnered with Varkey Foundation to launch Global Student Prize to recognise outstanding students that make an impact to local or international communities.[22]
On a May 1, 2023, earnings call, CEO Dan Rosensweig identified the rise of ChatGPT as a potential obstacle for the company's growth. The next day, Chegg's stock price collapsed by 48% in response.[23] Chegg announced that it will launch a GPT-4 powered AI platform called Cheggmate later in May 2023.[23]
Acquisitions edit
In 2010, Chegg made its first acquisition, purchasing CourseRank,[24] which was disabled in 2014.[25] In the same year, Chegg also acquired Cramster, a provider of online homework help,[26] and Notehall, an online marketplace for class notes.[27]
In 2011, Chegg acquired Zinch, a scholarship search and networking service for high school students and college recruiters, and continues to offer the service, under the Chegg brand name.[28] Chegg acquired software company 3D3R in late 2011 to develop its digital textbook product, kickstart its mobile product group, and open an engineering office in Rehovot, Israel.[29] In June 2014 Chegg acquired online tutoring platform InstaEDU, for a reported $30 million,[30] renaming the division Chegg Tutors,[25][31] and in October 2014 it acquired Internships.com.[citation needed]
In 2017, Chegg acquired RefME,[32] a free citation management tool available on web, iOS and Android. It was shut down on March 7, 2017, and user accounts were transferred over to CiteThisForMe,[33] Chegg's own citation service.
Chegg acquired Imagine Easy Solutions, a provider of online bibliography and research tools, for a reported $42 million, in 2016.[34] In 2017, the company acquired Cogeon GmbH, a German math education provider, for $15 million cash;[35]
In 2018, Chegg acquired WriteLab, which uses AI to analyze text and suggest improvements,[36][37] and online flash card tool StudyBlue.[38][39][40] During late 2019, Chegg acquired online coding, design, and data science school Thinkful,[41] for $80 million cash plus $20 million in cash or stock based on performance.[42]
In 2021, Chegg acquired the language learning software service Busuu for $436 million. Busuu, a once private company, is now fully integrated into Chegg.[43]
Leadership edit
As of 2021, Chegg's board of directors consists of:
- Dan Rosensweig, co-chair, president and CEO at Chegg
- Sarah Bond, Microsoft Corporation
- Richard Sarnoff, co-chair at Chegg; chair at KKR & Co.
- Renee Budig, EVP and CFO at CBS Interactive
- Melanie Whelan, Summit Partners[44]
- Marne Levine, VP at Facebook
- Ted Schlein, partner at Kleiner Perkins
- Jed York, co-chair at San Francisco 49ers
- Paul J. LaBlanc, president at Southern New Hampshire University[45]
Academic misconduct controversy edit
Some services offered by Chegg have been repeatedly documented as being problematic.[46] These services include "homework help" where "Chegg experts" solve homework questions for students.[47] Academic file-sharing[48][49] also occurs in the form of students posting homework question sheets soliciting answers. Academic file-sharing has been documented as being a form of violation of academic integrity at many schools.[50]
In February 2019, Chegg formed a partnership with Purdue University's Online Writing Lab (OWL), to make online educational writing tools more accessible to its students.[51] The affiliation was met by some faculty criticism, alluding to Chegg helping students cheat;[46] OWL director Harry Denny reported that he did not expect Purdue's reputation to suffer as a result, stating, "My experience has been that the company is committed to partnering with faculty and administration to address their concerns." Purdue University prohibits students soliciting answers using Chegg's homework help: "While Chegg can be helpful to access textbooks and more practice problems, using this resource to find assignment answers is considered academic dishonesty because it is a form of copying and plagiarism.".[52]
A report published by Citron Research in July 2019 claims that "Chegg has created forums to circumvent Turnitin, proving that Chegg is helping users continue institutionalized cheating".[53]
During the 2020 COVID-19 pandemic, controversy around Chegg and companies offering similar services escalated, as many students pivoted to personal computers from school computers that limited access to those sites.[49][54] For example, Georgia Tech alerted students in a physics class that certain students in the class had cheated on their online final exam by using answers posted on Chegg,[54] certain students in a chemistry class at Boston University were found to have similarly cheated on an online exam,[55] students from two chemistry classes at the University of British Columbia were accused of using Chegg for cheating on exams, including using two incorrect answers posted on Chegg,[56] and solutions to a physics exam at Washington University in St. Louis were posted on Chegg during the exam period.[57] Chegg cooperated with the investigations.[54][55][57] A study published in 2020 has found that Chegg answers student questions even though the questions have clear cues to indicate that the student is trying to buy answers for a current assessed activity—the questions are neither identified nor flagged as violations of academic integrity anywhere in the process.[58] Some universities explicitly forbid students from using Chegg's homework help services.[59][60]
Some professors have responded to students using Chegg to cheat on assignments and exams by posting fake responses to the questions themselves, in an effort to catch students who used Chegg to cheat by seeing who used the fake solution as their answer on the assignment or exam.[61]
It has also been reported that students have been subjected to blackmail after having used the services of Chegg.[62][63]
While Chegg shared information such as usernames, emails, or IP addresses to colleges, in August 2022, Chegg changed its "honor code policy" to limit the information they provide to universities and colleges. Chegg says that this change is to protect student privacy.[64]
In England's Higher Education Cheating Services Prohibition Bill, Chegg has been mentioned as an example of a website offering cheating services.[65]
Chegg Services and textbook rentals edit
By 2016, textbook rentals and student services were about even in company revenues;[66] by 2018, Chegg Services reported 3.1 million subscribers,[67] with services accounting for 79% of revenue. Students may search for both scholarships and internships on the website, and typically pay to access Chegg Services, such as Study, Advanced Writing, Tutors, and Math Solver, on a monthly basis.[66]
Chegg was sued by Pearson for breach of copyright in 2021, alleging that Chegg infringed on its copyright by selling answers to end-of-chapter questions included in Pearson textbooks.[68] In December 2019-2020, Doordash enetered an agreement with Chegg to deliver books for e-bike delivermen in urban restaurants that contribute to the scholarship, yet the was repurpose for 0 $ delivery fee deals when the delivery fee with from $ 1.00 dollar to $ 20.00 with an endorsement deal with a major American sports league.
Music 101 edit
Chegg sponsors music instruction contests for colleges in a program named Music 101. These conclude with live classroom instruction by noted music artists, and a $10,000 grant from its David B. Goldberg Music Scholarship fund for the winning school music department. In 2019, the company launched its ninth annual Chegg Music 101 campaign featuring YUNGBLUD. Previous events have featured U2, Imagine Dragons, Taylor Swift, Ed Sheeran, Shawn Mendes, Steve Aoki, and Liam Payne.[69][70]
See also edit
References edit
- ^ "2022 Annual Report". U.S. Securities and Exchange Commission. February 21, 2023.
- ^ a b Sharma, Asit (2018-03-22). "Is It Time to Take a More Serious Look at Chegg, Inc.? -". The Motley Fool. Retrieved 2019-05-02.
- ^ a b "Chegg Reports First Quarter 2020 Financial Results" (press release). Business Wire. May 4, 2020. Retrieved August 5, 2020.
- ^ Nate Engelberth (October 19, 2000). . Iowa State Daily. Archived from the original on 2020-11-05. Retrieved 2023-01-06.
- ^ a b c Pederson (2013). International directory of company histories. St. James Press. p. 115. ISBN 9781414482224. OCLC 833188977.
- ^ a b Miguel Helft (July 4, 2009). "We Rent Movies, So Why Not Textbooks?". The New York Times. Retrieved 2010-01-26.
... calculated that his bill for books that semester would have been $334 with Chegg, far less than the $657 he paid...
- ^ a b Girard, Lisa (January 18, 2012). "Fast-Growing Chegg Aims for High Marks with Students". Entrepreneur.
- ^ a b Parker, Garrett (November 7, 2016). "How Chegg Has Turned Education Upside Down".
- ^ Julie Schmit (2009-01-12). "Chegg CEO Rashid applies Netflix concept to textbooks". USA Today. Retrieved 2010-01-26.
- ^ a b Coster, Helen. "Apple Creates New Wrinkle In Start-Up's Plan To Disrupt Textbook Industry". Forbes.
- ^ Miguel Helft (July 4, 2009). "We Rent Movies, So Why Not Textbooks?". The New York Times. Retrieved 2010-01-26.
- ^ Helft, Miguel (February 3, 2010). "Rosensweig Lands at Textbook Renter Chegg.com". Bits Blog.
- ^ McNicholas, Kym. "Dan Rosensweig: His Journey From Yahoo To Guitar Hero Then Chegg". Forbes. Retrieved 2019-06-12.
- ^ Adams, Susan. "This $12 Billion Company Is Getting Rich Off Students Cheating Their Way Through Covid". Forbes. Retrieved 2023-09-28.
- ^ a b De La Merced, Michael (12 November 2013). "Chegg Prices Its I.P.O. at $12.50 a Share".
- ^ "Chegg stock stumbles after IPO tops targets".
- ^ Merced, Michael J. de la (2014-08-04). "Chegg Finds Partner to Handle Its Textbooks". The New York Times. ISSN 0362-4331. Retrieved 2019-02-27.
- ^ Buhr, Sarah (August 4, 2014). "Chegg Strikes Distribution Partnership With Ingram Books, Announces 15% Boost In Earnings From Digital Services".
- ^ a b "Pearson to partner with Chegg on textbook rentals | The Bookseller". www.thebookseller.com. Retrieved 2017-09-26.
- ^ "CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934". Security and Exchange Commission. Retrieved 29 September 2018.
- ^ Greig, Jonathan. "Chegg unveils new 'Uversity' content platform for US teachers". ZDNet. Retrieved 2021-06-14.
- ^ . FE News. 21 July 2022. Archived from the original on 2022-07-21. Retrieved 25 July 2022.
- ^ a b Turner, Nick (2 May 2023). "ChatGPT Threat Sparks 38% Selloff in Homework-Help Firm Chegg". Bloomberg.com. Retrieved 3 May 2023.
- ^ "TC Teardown: Chegg Is A Money Machine". June 5, 2018.
- ^ a b Cao, Vincent (2014-11-10). "CourseRank to be taken down at the end of the month". The Stanford Daily. Retrieved 2019-06-12.
- ^ "Exclusive: Chegg Buys Cramster".
- ^ Kelly, Meghan (July 8, 2011). "SEC filing cracks the egg on Chegg's Notehall purchase".
- ^ "Chegg Buys Zinch in Another Move Toward a "Social Education Platform"".
- ^ "Chegg Acquires Software Company Flux / 3D3R, SEC Filing Reveals". TechCrunch. 14 November 2011. Retrieved 2020-06-14.
- ^ Kolodny, Lora (2014-06-04). "Chegg Acquires Tutoring-On-Demand Site InstaEDU in $30M Cash Deal". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-02-27.
- ^ "Chegg buys InstaEDU in transition away from book rentals". Fortune.
- ^ "RefME becomes Cite This for Me". 14 February 2017.
- ^ "Save Time and Improve your Marks with CiteThisForMe, The No. 1 Citation Tool". Cite This For Me.
- ^ Lardinois, Frederic (2 May 2016). "Chegg acquires Imagine Easy Solutions, the company behind EasyBib, BibMe and Citation Machine". TechCrunch. Retrieved 2017-05-06.
- ^ Sharma, Asit (2018-03-22). "Is It Time to Take a More Serious Look at Chegg, Inc.? -". The Motley Fool. Retrieved 2019-05-31.
- ^ Sternlicht, Alexandra. "His Company WriteLab Was Acquired by Chegg Before He Turned 30". Forbes. Retrieved 2019-05-03.
- ^ "Chegg Cuts $15 Million Check to Buy AI-Feedback Tool, WriteLab - EdSurge News". EdSurge. 2018-05-16. Retrieved 2019-05-03.
- ^ "Chegg Enhances Content And Flash Card Tools Offering With Acquisition Of StudyBlue, To Increase Value for Students And Expand Addressable Market". investor.chegg.com. Retrieved 2019-10-02.
- ^ Zacks, Contributor Zacks Equity Research. "Chegg (CHGG) Acquires StudyBlue, Bolsters Content Offering". www.nasdaq.com. Retrieved 2020-03-27.
{{cite web}}:|first=has generic name (help) - ^ "Chegg Acquires StudyBlue | Vista Point Advisors". vistapointadvisors.com. Retrieved 2020-03-27.
- ^ "Chegg to Acquire Coding Boot Camp | Inside Higher Ed". www.insidehighered.com. 5 September 2019.
- ^ "Chegg to Buy Coding Bootcamp Thinkful for $80 Million". EdSurge. 2019-09-04. Retrieved 2022-07-10.
- ^ "Chegg to Enter Rapidly Expanding Digital Language Learning Market with Acquisition of Busuu". www.businesswire.com. 2021-11-29. Retrieved 2022-01-19.
- ^ "Chegg appoints Melanie Whelan to Board of Directors". www.wrcbtv.com. Retrieved 2019-06-12.
- ^ "Chegg appoints Dr. Paul J. LeBlanc to Board of Directors". Chegg, Inc. Retrieved July 29, 2019.
- ^ a b Mckenzie, Lindsay (March 12, 2019). "The Wrong Partnership?". InsideHigherEd.com. Retrieved November 19, 2019.
- ^ Lancaster, Thomas; Cotarlan, Codrin (2021). "Contract cheating by STEM students through a file sharing website: a Covid-19 pandemic perspective". International Journal for Educational Integrity. Vol. 17. doi:10.1007/s40979-021-00070-0. Retrieved Mar 23, 2021.
- ^ Rogerson, A. M., & Basanta, G. (2016). Peer-to-peer file sharing and academic integrity in the Internet age. In T. Bretag (Ed.), Handbook of Academic Integrity (pp. 273-285). Singapore: Springer.
- ^ a b Eaton, S. E. (2020). Academic Integrity During COVID-19: Reflections from the University of Calgary. International Studies in Educational Administration, 48(1), 80-85. Retrieved from https://prism.ucalgary.ca/handle/1880/112293
- ^ Blau, Ina; Goldberg, Shira; Friedman, Adi; Eshet-Alkalai, Yoram (2020-07-22). "Violation of digital and analog academic integrity through the eyes of faculty members and students: Do institutional role and technology change ethical perspectives?". Journal of Computing in Higher Education. 33 (1): 157–187. doi:10.1007/s12528-020-09260-0. ISSN 1042-1726. PMC 7375033. PMID 32837125.
- ^ Pratt, Kati (February 6, 2019). "The Purdue University Online Writing Lab and Chegg Partner to Make World-Class Writing Education Tools More Accessible". Purdue.edu. Purdue University. Retrieved November 19, 2019.
- ^ "Everyday Examples of Academic Dishonesty". Purdue University.
- ^ "Institutionalized Cheating is No Longer OK". citronresearch.com. 22 March 2019.
- ^ a b c Downey, Maureen (May 4, 2020). "Georgia Tech warns physics students who cheated: Admit it or risk failing". The Atlanta Journal-Constitution. Retrieved August 5, 2020.
- ^ a b Pirog, Allison (April 28, 2020). "Chemistry and physics departments looking to limit cheating". The Daily Free Press. Retrieved August 5, 2020.
- ^ "CityNews". vancouver.citynews.ca.
- ^ a b Butler, Jayla (April 15, 2020). "Arts & Sciences investigates Physics 192 academic integrity breach". Student Life. Retrieved August 5, 2020.
- ^ Manoharan, Sathiamoorthy; Speidel, Ulrich (December 2020). "Contract Cheating in Computer Science: A Case Study" (PDF). 2020 IEEE International Conference on Teaching, Assessment, and Learning for Engineering (TALE). IEEE Xplore. pp. 91–98. doi:10.1109/TALE48869.2020.9368454. ISBN 978-1-7281-6942-2.
- ^ "Contract cheating". www.curtin.edu.au. Curtin University.
- ^ "Academic Integrity at the School of Computer Science". www.cs.auckland.ac.nz. University of Auckland.
- ^ "To Catch Students Cheating in Exam, Professor Comes up with a Fake Question Trap & Succeeds!". 13 December 2019.
- ^ Dishonour system "Dishonour system". www.winnipegfreepress.com.
{{cite web}}: Check|url=value (help) - ^ "Millions of college students use Chegg, which professors say enables cheating – and possibly blackmail". eu.usatoday.com.
- ^ "Chegg no longer sharing student information". www.statepress.com.
- ^ "Higher Education Cheating Services". hansard.parliament.uk. UK Government.
- ^ a b "CHEGG, INC. : Stock Market News and Information | CHGG| US1630921096 | MarketScreener". www.marketscreener.com. 28 June 2023.
- ^ "Chegg (CHGG) Tops Q4 Earnings Estimates, Raises '19 View". finance.yahoo.com. 12 February 2019.
- ^ Pearson sues former partner Chegg for copyright infringement
- ^ "Chegg Looking For A Come-Up In School Contest"; InsideRadio; September 1, 2015.
- ^ "Vote to bring Chegg Music 101 with YUNGBLUD to your school". article.wn.com.
External links edit
- Business data for Chegg, Inc.:
- Bloomberg
- SEC filings
- Yahoo!