The business model? Rent out college textbooks via a website, deliver them to students via UPS and save them 50% to 70% off the cost of buying used or new books.
The 18-month-old service has hundreds of thousands of customers on 4,000 U.S. campuses, says Rashid, 38. While financing has tightened for businesses, Chegg just landed $25 million from venture-capital firms led by heavyweight Kleiner Perkins Caufield & Byers. Even a recession doesn’t dampen Chegg’s outlook. More people look to save money or return to school when jobs are scarce.
This is a great concept given publishing company executives continue to jack up textbook prices not because of inherent value but because they can. Also, the eBook Reader is blazing a trail across college campuses, but not as quickly as I anticipated.
