EDSURGE: Chegg Chucks Textbooks Business, Goes All-In on Digital
Career College Central Summary:
Chegg, which got its start in 2001 by helping students rent physical textbooks, is leaving its old business behind as it goes all-in on digital tools. The company has reached a multi-year agreement to allow Ingram Content Group, a major book distributor, to take over its textbook rental operations starting May 1, 2015. Students will still be able to rent textbooks from Chegg, which will take a 20% commission from each rental, according to Fast Company.
Even though print textbooks raked in $213 million in revenues for Chegg last year, maintaining these operations has been costly. The company's net loss increased from $55.8 million in 2013 to $64.7 million last year. Since debuting on the public market at $9 a share in November 2013, shares of the company have hovered below $7 for most of 2014.
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