Chegg rented $213 million worth of textbooks online to
students in 2014. The company recently turned that part of its business over to
Ingram Content Group so it could focus on digital products.
Students will continue to be able to rent textbooks
through the Chegg platform, but Ingram will be managing and shipping the
physical inventory. Chegg plans to put more time, money, and effort into
improving and enhancing its digital operations, which range from college
admissions to internship placement.
“The rental model is where we started; the real product
is what you’re seeing today,” Chegg CEO Dan Rosensweig told Fast Company.
“Everything we think students want is online.”
The strategy could cost the company in the short term,
since Chegg will only receive 20% on the books Ingram rents. Chegg earned $91
million last year, but projects revenues to increase to $133 million-$143
million in the next two years as more colleges and employers pay it for leads
and students pay for learning materials and services.
Ingram will start taking over the physical textbook
rental business for Chegg by May 1 and be running all warehousing operations by
the end of the year, according to a report in Ink, Bits, & Pixels.
