Educational technology company offering textbook rentals, homework help, and test prep. Founded 2005, IPO 2013. “Chegg” = chicken (students) + egg (knowledge). Controversial for enabling academic dishonesty, defended as study aid.

Business Evolution

Started as textbook rental marketplace (2005). Acquired Cramster (homework help site, 2010) and pivoted to subscription services:

• Chegg Study ($19.95/month): Textbook solutions, expert Q&A, step-by-step explanations
• Chegg Writing: Plagiarism checker, grammar tool
• Chegg Math Solver: Photo math problem solver
• Tutors: 1-on-1 online tutoring

How Chegg Study Works

Database of solutions to textbook problems. Students search ISBN, find their book, view step-by-step answers. “Expert Q&A”: post homework question, expert responds within hours. Subscriptions spiked during COVID-19 online learning.

Academic Integrity Debate

Universities’ view: Cheating service disguised as study help. Students copy answers without learning. Honor code violations.

Chegg’s defense: Learning tool, like study groups or tutors. Students should use to check work, not substitute thinking. Terms of service prohibit academic dishonesty.

Reality: Many students copy verbatim, especially during pandemic stress. “Chegg it” became verb.

University Crackdowns

Professors change problems, use proctoring software, switch to essays/projects. Some request Chegg data: who viewed specific questions during exam windows. Chegg cooperates, turning over user data, leading to honor code violations. Students caught, expelled.

Stock Market Rollercoaster

Pandemic boom: stock hit $115 (2021). Post-pandemic decline + ChatGPT disruption: plummeted to $10-$15 (2023). Free AI (ChatGPT, Bard) solves homework faster than Chegg subscription. Company laid off staff, revenue dropped.

ChatGPT Disruption

ChatGPT can solve homework problems instantly, free. Explains step-by-step like Chegg. Doesn’t store user data (no honor code risk). Chegg’s moat eroded. Company pivoted to AI-powered “CheggMate” (2023), partnering with OpenAI, but market unimpressed.

Cultural Impact

“Did you Chegg it?” common student question. Normalized looking up answers. Professors frustrated: “Why can’t students struggle anymore?” Symptom of larger issues: overloaded students, teaching-to-test culture, high-stakes grading.

Sources:

• Chegg company history and financials
• University honor code enforcement reports
• Stock performance and ChatGPT impact analysis (2023)