Chegg Helps to Lower Education Costs through Online Site

By | June 9, 2010 at 2:23 am

Chegg is a successful textbook rental company based in the US; we take a look at how it is helping students to save money…

As any student knows, buying textbooks is expensive and more often than not you will need a specialist book, or collection of books, for each semester. Therefore a service which enables you to receive the books you need at a fraction of the cost would be a huge help…

Introducing Chegg…

Launched in 2005, Chegg offers students a textbook rental service where they can find the book they desire for their course, receive it through the post and return it once they are finished with it.

The service was the brainchild of Osman Rashid and Aayush Phumbhra who were frustrated with their own university’s bookstore and wanted to create an effective solution that would benefit students, lecturers, professors and publishers. The company also allow students to sell their old textbooks.

The company gets its name from a rather clever play on the words ‘chicken’ and ‘egg’.

Saving Money by using Chegg…

Chegg claims that on average each student will save over $500 (US) a year by using this rental method as opposed to buying books; but just how is this possible?

As the student is renting the book, Chegg are able to offer discounted rates and the website highlights the percentage of saving on each book a student can receive. The savings themselves are calculated by subtracting the book’s rental fee from the publishers suggested list price.

It is not just money that a student saves though by using Chegg; purchasing textbooks can be time consuming with time spent queuing and waiting to be served. The service eliminates this often frustrating element of acquiring textbooks.

Environmental Benefits…

Recycling always helps the environment and book rentals are no different. With students re-using books, less new books need to be sold thus helping to reduce paper usage. But this does not mean that students will receive a tatty old copy – Chegg offers a Quality of Book Guarantee and asks students to keep highlighting to a minimum. If a student is unhappy with the quality of a book, they are shipped another copy.

Further to this Chegg has partnered with American Forests to plant a tree for every book that is rented or sold – to date they have planted more than two million trees.

Chegg as a Business Model…

By all accounts Chegg seems to be one of the most successful e-commerce set-ups of recent years and has been embraced by 6,400 college campuses who take full advantage of the 4.2 million books contained in the virtual bookstore.

Its main attraction is most defiantly the savings it brings to its users who save money whilst helping to boost the success of the company. Moreover, the ethos of recycling and re-using is always a successful one which is embraced by the majority of people.

Combining both saving money and recycling is almost guaranteed to see Chegg continue to thrive; a view which is supported by CEO of Cake Financial,  Steven Carpenter who states that Chegg ‘should control 80%+ of the market share over time’.

Image credit Lucy Tartan

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