Wikipedia - Benutzerbeiträge [de]

Chegg

2014-06-24T18:13:47Z

14.139.128.11:

{{Advert|date=July 2012}}
{{Infobox dot-com company
|company_name = Chegg, Inc.
|company_logo = [[File:Current Chegg Logo.jpg|225px|Current Chegg Logo]]
|company_type = Public company
|traded_as ={{NYSE|CHGG}}
|company_slogan = ''Save Time, Save Money, and Get Smarter''
|foundation = 2005
|founder = [[Osman Rashid]]
|location = [[Santa Clara, California|Santa Clara]], [[California|CA]]
|key_people = [[Dan Rosensweig]], CEO Aayush Phumbhra, Founder
|industry = [[Education]]
|products = Online [[textbook]] rental, eTextbooks, [[homework]] help, course scheduling and review, and scholarships via [[Zinch]].
|num_employees = 300+ (July 2012)
|homepage = http://www.chegg.com/
}}
'''Chegg''' is an company based in [[Santa Clara, California]], that specializes in online [[textbook]] rentals (both in physical and digital formats), [[homework]] help, [[scholarships]], course reviews and [[internship]] matching. It is meant to help students in [[high school]] and [[college]]. The company was created in the [[United States]] by three [[Iowa State University]] students in 2001 and was founded by entrepreneur Aayush Phumbhra.<ref name="tws26janab">{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The name ''Chegg'' is a contraction of the words ''chicken'' and ''egg'', based on the founders’ experience after graduating from college: they could not land a job without experience, but could not get experience without a job, a ''[[chicken or the egg]]'' type of quandary.<ref name=tws26jan4b/>

==Business model==
To many college students, textbooks are quite expensive and often priced higher than $100 per book. Students don't always require the books after each semester and there was no reliable way to sell them. One estimate was that college students spent $667 annually on books in 2009 on average.<ref name=tws26janbv334/> A second estimate was $1000 per year,<ref name=tws26jan12>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> with signs that textbook prices were increasing faster than [[inflation]].<ref name=tws26jan12/> Moreover, some college bookstores would offer to buy back the used books for a fraction of their original price.<ref name="tws26janab"/>

The founders began noticing the trend of online rental from the success of services like [[Netflix]].<ref name=tws26jan4>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... the inspiration was Netflix. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> Consequently, in the summer of 2007, Rashid and Phumbhra re-positioned the company along the lines of [[Netflix]] as a way to rent textbooks to students.<ref name="tws26janab"/><ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Since Chegg had little money initially, when an order came in Rashid would buy the book using a credit card and have it shipped to the student until automation came later.<ref name=tws26jan4c/> At one point, with a huge volume of traffic on his credit card, his credit card firm suspected fraud, but Rashid was able to persuade the credit supplier to extend credit using multiple numbers of cards.<ref name=tws26jan4c>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... They would buy the book using Mr. Rashid’s American Express card and have it shipped to the student. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Books normally rent around half the retail price; for example, a macroeconomics textbook priced at $122 at a college bookstore would rent for $65 at Chegg.<ref name=tws26jan4d>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> But savings varied from book to book.<ref>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Stories in campus newspapers helped spread the idea. One senior at [[Arizona State University]] calculated he would spend about half as much renting books than buying them for one semester.<ref name=tws26jan4b>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... calculated that his bill for books that semester would have been $334 with Chegg, far less than the $657 he paid. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The idea clicked. In 2008, the firm hired the former chief executive of [[Match.com]], Jim Safka, to run the firm.<ref name=tws26jan>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... Jim Safka, a former chief executive of Match.com and Ask.com who was recently recruited to run Chegg, ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> In 2008, revenues were about $10 million; in 2009, revenues in January alone were $10 million, according to Safka.<ref name=tws26jan/> The firm has raised additional capital from [[venture capitalist]]s. The company also started a campus representative program, which paid the enrolled college students per referral for purchases made by other college students.<ref name=tws26jan3>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= Based on that kind of growth, the company was able to raise $25 million in December ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

In January 2009, ''[[USA Today]]'' reporter Julie Schmit described Chegg as a "leader" in the "burgeoning arena of college textbook rentals."<ref name=tws26jan11>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= The company he co-founded, Chegg, is a leader in the burgeoning arena of college textbook rentals. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> The firm had 55 customer service reps at that point.<ref name=tws26jan11a21a>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= Chegg is headquartered ... Trash bins burst with soft-drink cans, paper plates and discarded snacks. ... There's even a cat: Mongo.
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref>

Since many textbooks become out-of-date quickly, often replaced with new versions, a key to profitability will be how long a book can be re-rented, or recycled; in the market for rental cars, for example, firms such as [[Hertz Rent-a-Car|Hertz]] and [[Avis Rent a Car System|Avis]] buy new cars but sell them after about a year or two of service. But what is the useful life of a rented book? "The market can be tricky," said market analyst Kathy Mickey, because professors must use the same books for several semesters in order for book-rental companies to make money on the programs.<ref name=tws26janbv334ab/>

==Competitors==
The college textbook market has a variety of competitors. While the main source of books for college students is college bookstores, there is an increasing number of options.<ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= ... Competitors include eCampus.com, BookRenter.com [http://www.060.com/pMMMM Bookrenter Official Site] and CampusBookRentals.com. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Bookseller [[Barnes & Noble]], which owns 636 college bookstores, began its own textbook rental program in January 2010, largely patterned along the lines of Chegg's service. One report is that Barnes & Noble will rent books at about 42% of their original price, on average.<ref name=tws26janbv334>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... Bookseller Barnes & Noble is launching a textbook rental program for college students, making it the newest entrant in a growing field. ...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> Students can also rent textbooks from their college bookstore or online, with orders shipped to their college bookstore for pickup, according to one [[Associated Press]] repor.<ref name=tws26janbv334/>

The [[United States Congress|U.S. Congress]] set aside $10 million to encourage college bookstores to rent textbooks,<ref name=tws26janbv334ab>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... because Congress last year set aside $10 million to provide grants for college bookstores to start rental programs...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> so bookstores are starting a up rental programs as well. Follett Higher Education Group started up a rental program in 2009.<ref name=tws26janbv334ab/>

''[[Wall Street Journal]]'' reporter Peter King compared several options for textbook rentals in April, 2009.<ref name=tws26jan12ab>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= To see how the process works, we ordered textbooks from three rental companies: BookRenter.com, Campus Book Rentals and Chegg; and one textbook seller, Textbooks.com, which doesn't rent books, but offers guaranteed buybacks on some texts, making those books a quasi-rental.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> He compared firms such as BookRenter.com, Campus Book Rentals, Chegg, and Textbooks.com which sells textbooks online but offers a guaranteed buyback later, making these books "quasi-rentals".<ref name=tws26jan12ab/> King compared offerings related to an expensive accounting textbook<ref name=tws26jan12cd>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= We decided to check prices and availability ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> and noted some confusion with book packages, with return labels differing from the firms which had been ordered from; figuring out that the original sources were Campus Book Rentals and Chegg required matching the shipping tracking orders with the email invoices.<ref name=tws26jan12ef>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... Only by matching the shipping tracking numbers with our email invoices could we figure out these were the books we ordered from Campus Book Rentals and Chegg.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> A Chegg spokesperson said the firm sometimes uses "strategic partners" if a particular book isn't in its warehouse, but the reporter wondered whether the use of third party suppliers might cause confusion when books needed to be returned at the end of the semester.<ref name=tws26jan12gh>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= A Chegg spokeswoman later told us the company sometimes uses "strategic partners" if the book isn't in its warehouse. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Chegg was the "most expensive rental" and charged sales tax.<ref name=tws26jan12gh/> The least expensive alternative was Textbooks.com, although this firm required an upfront expense of $117.50; King surmised the upfront payout would mean college students had less money available during the semester.<ref name=tws26jan12gh/> In all cases, books had to be returned by the deadline to make the cost savings worthwhile.<ref name=tws26jan12ij1>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= With book seller Textbooks.com, the book has to be returned by a set deadline to get the guaranteed buyback. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> The online alternatives were substantially better than buying the book from the college bookstore and selling it back to that bookstore at the end of the semester.<ref name=tws26jan12ij2>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= In contrast, buying a used copy at the ASU bookstore costs $125.25. Subtracting the bookstore's estimated buyback price of $55 would leave us with a net cost of $70.25.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> In a test using a different book, Chegg had the lowest price, while other firms did not even carry the book.<ref name=tws26jan12ij3>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... We did a spot check of prices for the "Norton Field Guide to Writing" (list price, new: $48), which is widely assigned for English composition courses. Chegg would rent it for $9.99 for 60 days. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Textbooks.com, according to the report, does not offer buyback chances to all books it sells.<ref name=tws26jan12ij3/>

===Finances===
One report is that the firm first received $2.2 million in financing in January 2007, led by Mike Maples (through Maples Investments, now called [[Floodgate Fund]]) and Gabriel Venture Partners. In August 2008, Oren Zeev is believed to have invested $4.7 million,<ref>http://www.themarker.com/technation/1.2098573</ref> then with Primera Capital, led the Series B round of $7 million, which included participation from prior investors Gabriel Venture Partners and Mike Maples. One source suggests the firm raised $57 million in November 2009.<ref name=tws26jan13>{{cite news
|title= Book rental company Chegg raises $57M
|quote= Online textbook rental company Chegg.com Inc. said Thursday it raised $57 million in a fourth round of funding. ...
|publisher= ''San Jose Business Journal''
|date= November 19, 2009
|url= http://sanjose.bizjournals.com/sanjose/stories/2009/11/16/daily78.html
|accessdate= 2010-01-26
}}</ref> Another suggests total equity financing since inception, as of January 2010, is in the range of $150 million, primarily from [[venture capital]] funding.<ref name=tws26jan14>{{cite news
|author= PR Newswire
|title= Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook Rentals
|quote= Chegg.com ... announced today that it has successfully closed $57 million Series D equity funding,...
|publisher= ''Reuters''
|date= 2010-01-26
|url= http://www.reuters.com/article/idUS196206+19-Nov-2009+PRN20091119
|accessdate= 2010-01-26
}}</ref> Investors include [[Foundation Capital]], [[Insight Venture Partners]], [[Kleiner, Perkins, Caufield & Byers]], Pinnacle Ventures, and TriplePoint Capital.<ref name=tws26jan14/>

===Services===
Chegg ships books from a warehouse in [[Shepherdsville, Kentucky]], which is close to [[United Parcel Service|UPS]]'s [[Worldport (UPS air hub)|Worldport]] air hub facility. Students order books by entering the [[ISBN]], title, or author on the Chegg website. Textbooks can be rented by the term, such as a quarter or semester.<ref name="Iowa State Daily">[http://www.iowastatedaily.com/articles/2005/09/01/news/20050901-archive.txt/ Iowa State Daily]</ref> Textbooks are mailed in branded bright orange boxes. At the end of the term, students receive, by email, a pre-paid postage [[barcode]], which they print and affix to any box.<ref name="Iowa State Daily"/> Students must pay late fees if the book is not postmarked by the deadline. Chegg permits "reasonable highlighting" in books but doesn't permit writing in them.<ref>{{cite news|date=January 11, 2009|url=http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm/ |title=Chegg: Rashid N.|work=USA Today]|deadurl=yes}} {{Dead link|date=April 2014|bot=RjwilmsiBot}}</ref> The company offers a 21 day money-back guarantee for "any reason". Further, Chegg has a program of buying used textbooks from students to increase inventory. Chegg also sells books that may not be rental candidates because of student kits or other consumables.{{citation needed|date=January 2014}}

===Green marketing promotion===
Chegg has an arrangement with American Forests' Global Releaf Program such that every book rented or sold means that one tree is planted. The firm claims that over five million trees have been planted.<ref>{{cite web|url=http://www.chegg.com/ecofriendly/|website=Chegg.com|title=Ecofriendly}}</ref><ref>{{cite web | title=Global Relief: Ecofriendly | publisher=AmericanForests.org | url=http://www.americanforests.org/global_releaf/ }}</ref>

===Controversy===
Chegg makes it difficult for users to delete an account. A user must chat or call to have it deleted, but Chegg retains the last four digits of the user's credit card.{{citation needed|date=January 2014}}

===History===
In 2001, Josh Carlson, Mike Seager, and Mark Fiddelke created the precursor to the business called Cheggpost.com, a [[Craigslist]]-type classified service for college students at [[Iowa State University]]. Aayush Phumbhra, who attended [[Iowa State University]] and was an avid Cheggpost.com user, approached Carlson in late 2003 with the idea of taking the company national. Phumbhra mentioned the service to a friend, Osman Rashid, who saw potential in the idea, joined as [[chief executive officer]] to help fund the company in 2005, and formally launched Chegg, Inc., which was incorporated in August. Carlson remained until February 2006 and then left to pursue other interests. In April 2006, Chegg found some initial investors, including Sam Spadafora, Mike Maples, and others. The co-founders quit their regular jobs to focus on Chegg full-time. They tested services, acquired three college classifieds businesses, and publicized Chegg via campus campaigns at SUNY Canton and word-of-mouth. In summer 2007, the firm launched "textbookflix.com", which used a textbook rental model modeled after [[Netflix]].<ref>[http://www.newsweek.com/id/40918/ ''Newsweek'']</ref> Rashid and Phumbhra decided to switch the "textbookflix" name to "Chegg.com" in December 2007. The firm has enjoyed strong growth;<ref>[http://www.bloomberg.com/apps/news?pid=20601204&sid=aE6qkSD26c74/ Bloomberg]</ref> according to a company spokesperson, Chegg rented its two millionth book in 2010.<ref>[http://www.kmph.com/Global/story.asp?S=11801303&nav=menu612_10_1_4 Fox]</ref> Chegg also went on to acquire six separate companies in 14 months, mostly revolving around the higher education space.<ref>[http://mashable.com/2011/08/19/cheggs-acquisition/]</ref> These companies include Courserank, [[Cramster.com]], [[Notehall]], [[Student of Fortune]], [[Zinch]], 3D3R.<ref>[http://www.crunchbase.com/company/chegg]</ref> In June 2014, Chegg announced that it purchased [[InstaEDU]], an online tutoring service, for $30 million.<ref>{{cite news|last1=Griffith|first1=Erin|title=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|url=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|publisher=Fortune Magazine}}</ref>

===IPO===
Chegg began trading shares publicly on the [[New York Stock Exchange]] on November 13, 2013. According to the ''San Jose Business Times'', the [[Initial public offering|IPO]] raised $187.5 million and gave it an initial [[Market capitalization|market cap]] of about $1.1 billion.<ref>{{cite news| url=http://www.bizjournals.com/sanjose/news/2013/11/12/chegg-tops-ipo-targets-valuation.html | title=Chegg stock stumbles after IPO tops targets}}</ref>

==See also==
* [[Book rental service]]

==External links==
* [http://www.chegg.com/ Official site]

==Similar Sites==
*[http://www.syllabusrate.com Syllabus Rate]
*[http://www.coursehero.com Course Hero]
*[http://www.ratemyprofessors.com Rate My Professors]
*[http://www.cramster.com Cramster]
*[http://www.half.com Half]
*[http://www.amazon.com Amazon]
*[http://www.notehall.com Note Hall]

==References==
{{Reflist|2}}

[[Category:Online retail companies of the United States]]
[[Category:Companies based in Santa Clara, California]]
[[Category:Textbook business]]
[[Category:Book selling websites]]
[[Category:Internet properties established in 2005]]
[[Category:Book rental]]

Chegg

2014-06-24T18:12:06Z

14.139.128.11:

{{Advert|date=July 2012}}
{{Infobox dot-com company
|company_name = Chegg, Inc.
|company_logo = [[File:Current Chegg Logo.jpg|225px|Current Chegg Logo]]
|company_type = Public company
|traded_as ={{NYSE|CHGG}}
|company_slogan = ''Save Time, Save Money, and Get Smarter''
|foundation = 2005
|founder = [[Osman Rashid]]
|location = [[Santa Clara, California|Santa Clara]], [[California|CA]]
|key_people = [[Dan Rosensweig]], CEO Aayush Phumbhra, Founder
|industry = [[Education]]
|products = Online [[textbook]] rental, eTextbooks, [[homework]] help, course scheduling and review, and scholarships via [[Zinch]].
|num_employees = 300+ (July 2012)
|homepage = http://www.chegg.com/
}}
'''Chegg''' is an charismatic company based in [[Santa Clara, California]], that specializes in online [[textbook]] rentals (both in physical and digital formats), [[homework]] help, [[scholarships]], course reviews and [[internship]] matching. It is meant to help students in [[high school]] and [[college]]. The company was created in the [[United States]] by three [[Iowa State University]] students in 2001 and was founded by entrepreneur Aayush Phumbhra.<ref name="tws26janab">{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The name ''Chegg'' is a contraction of the words ''chicken'' and ''egg'', based on the founders’ experience after graduating from college: they could not land a job without experience, but could not get experience without a job, a ''[[chicken or the egg]]'' type of quandary.<ref name=tws26jan4b/>

==Business model==
To many college students, textbooks are quite expensive and often priced higher than $100 per book. Students don't always require the books after each semester and there was no reliable way to sell them. One estimate was that college students spent $667 annually on books in 2009 on average.<ref name=tws26janbv334/> A second estimate was $1000 per year,<ref name=tws26jan12>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> with signs that textbook prices were increasing faster than [[inflation]].<ref name=tws26jan12/> Moreover, some college bookstores would offer to buy back the used books for a fraction of their original price.<ref name="tws26janab"/>

The founders began noticing the trend of online rental from the success of services like [[Netflix]].<ref name=tws26jan4>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... the inspiration was Netflix. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> Consequently, in the summer of 2007, Rashid and Phumbhra re-positioned the company along the lines of [[Netflix]] as a way to rent textbooks to students.<ref name="tws26janab"/><ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Since Chegg had little money initially, when an order came in Rashid would buy the book using a credit card and have it shipped to the student until automation came later.<ref name=tws26jan4c/> At one point, with a huge volume of traffic on his credit card, his credit card firm suspected fraud, but Rashid was able to persuade the credit supplier to extend credit using multiple numbers of cards.<ref name=tws26jan4c>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... They would buy the book using Mr. Rashid’s American Express card and have it shipped to the student. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Books normally rent around half the retail price; for example, a macroeconomics textbook priced at $122 at a college bookstore would rent for $65 at Chegg.<ref name=tws26jan4d>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> But savings varied from book to book.<ref>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Stories in campus newspapers helped spread the idea. One senior at [[Arizona State University]] calculated he would spend about half as much renting books than buying them for one semester.<ref name=tws26jan4b>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... calculated that his bill for books that semester would have been $334 with Chegg, far less than the $657 he paid. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The idea clicked. In 2008, the firm hired the former chief executive of [[Match.com]], Jim Safka, to run the firm.<ref name=tws26jan>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... Jim Safka, a former chief executive of Match.com and Ask.com who was recently recruited to run Chegg, ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> In 2008, revenues were about $10 million; in 2009, revenues in January alone were $10 million, according to Safka.<ref name=tws26jan/> The firm has raised additional capital from [[venture capitalist]]s. The company also started a campus representative program, which paid the enrolled college students per referral for purchases made by other college students.<ref name=tws26jan3>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= Based on that kind of growth, the company was able to raise $25 million in December ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

In January 2009, ''[[USA Today]]'' reporter Julie Schmit described Chegg as a "leader" in the "burgeoning arena of college textbook rentals."<ref name=tws26jan11>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= The company he co-founded, Chegg, is a leader in the burgeoning arena of college textbook rentals. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> The firm had 55 customer service reps at that point.<ref name=tws26jan11a21a>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= Chegg is headquartered ... Trash bins burst with soft-drink cans, paper plates and discarded snacks. ... There's even a cat: Mongo.
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref>

Since many textbooks become out-of-date quickly, often replaced with new versions, a key to profitability will be how long a book can be re-rented, or recycled; in the market for rental cars, for example, firms such as [[Hertz Rent-a-Car|Hertz]] and [[Avis Rent a Car System|Avis]] buy new cars but sell them after about a year or two of service. But what is the useful life of a rented book? "The market can be tricky," said market analyst Kathy Mickey, because professors must use the same books for several semesters in order for book-rental companies to make money on the programs.<ref name=tws26janbv334ab/>

==Competitors==
The college textbook market has a variety of competitors. While the main source of books for college students is college bookstores, there is an increasing number of options.<ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= ... Competitors include eCampus.com, BookRenter.com [http://www.060.com/pMMMM Bookrenter Official Site] and CampusBookRentals.com. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Bookseller [[Barnes & Noble]], which owns 636 college bookstores, began its own textbook rental program in January 2010, largely patterned along the lines of Chegg's service. One report is that Barnes & Noble will rent books at about 42% of their original price, on average.<ref name=tws26janbv334>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... Bookseller Barnes & Noble is launching a textbook rental program for college students, making it the newest entrant in a growing field. ...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> Students can also rent textbooks from their college bookstore or online, with orders shipped to their college bookstore for pickup, according to one [[Associated Press]] repor.<ref name=tws26janbv334/>

The [[United States Congress|U.S. Congress]] set aside $10 million to encourage college bookstores to rent textbooks,<ref name=tws26janbv334ab>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... because Congress last year set aside $10 million to provide grants for college bookstores to start rental programs...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> so bookstores are starting a up rental programs as well. Follett Higher Education Group started up a rental program in 2009.<ref name=tws26janbv334ab/>

''[[Wall Street Journal]]'' reporter Peter King compared several options for textbook rentals in April, 2009.<ref name=tws26jan12ab>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= To see how the process works, we ordered textbooks from three rental companies: BookRenter.com, Campus Book Rentals and Chegg; and one textbook seller, Textbooks.com, which doesn't rent books, but offers guaranteed buybacks on some texts, making those books a quasi-rental.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> He compared firms such as BookRenter.com, Campus Book Rentals, Chegg, and Textbooks.com which sells textbooks online but offers a guaranteed buyback later, making these books "quasi-rentals".<ref name=tws26jan12ab/> King compared offerings related to an expensive accounting textbook<ref name=tws26jan12cd>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= We decided to check prices and availability ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> and noted some confusion with book packages, with return labels differing from the firms which had been ordered from; figuring out that the original sources were Campus Book Rentals and Chegg required matching the shipping tracking orders with the email invoices.<ref name=tws26jan12ef>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... Only by matching the shipping tracking numbers with our email invoices could we figure out these were the books we ordered from Campus Book Rentals and Chegg.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> A Chegg spokesperson said the firm sometimes uses "strategic partners" if a particular book isn't in its warehouse, but the reporter wondered whether the use of third party suppliers might cause confusion when books needed to be returned at the end of the semester.<ref name=tws26jan12gh>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= A Chegg spokeswoman later told us the company sometimes uses "strategic partners" if the book isn't in its warehouse. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Chegg was the "most expensive rental" and charged sales tax.<ref name=tws26jan12gh/> The least expensive alternative was Textbooks.com, although this firm required an upfront expense of $117.50; King surmised the upfront payout would mean college students had less money available during the semester.<ref name=tws26jan12gh/> In all cases, books had to be returned by the deadline to make the cost savings worthwhile.<ref name=tws26jan12ij1>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= With book seller Textbooks.com, the book has to be returned by a set deadline to get the guaranteed buyback. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> The online alternatives were substantially better than buying the book from the college bookstore and selling it back to that bookstore at the end of the semester.<ref name=tws26jan12ij2>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= In contrast, buying a used copy at the ASU bookstore costs $125.25. Subtracting the bookstore's estimated buyback price of $55 would leave us with a net cost of $70.25.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> In a test using a different book, Chegg had the lowest price, while other firms did not even carry the book.<ref name=tws26jan12ij3>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... We did a spot check of prices for the "Norton Field Guide to Writing" (list price, new: $48), which is widely assigned for English composition courses. Chegg would rent it for $9.99 for 60 days. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Textbooks.com, according to the report, does not offer buyback chances to all books it sells.<ref name=tws26jan12ij3/>

===Finances===
One report is that the firm first received $2.2 million in financing in January 2007, led by Mike Maples (through Maples Investments, now called [[Floodgate Fund]]) and Gabriel Venture Partners. In August 2008, Oren Zeev is believed to have invested $4.7 million,<ref>http://www.themarker.com/technation/1.2098573</ref> then with Primera Capital, led the Series B round of $7 million, which included participation from prior investors Gabriel Venture Partners and Mike Maples. One source suggests the firm raised $57 million in November 2009.<ref name=tws26jan13>{{cite news
|title= Book rental company Chegg raises $57M
|quote= Online textbook rental company Chegg.com Inc. said Thursday it raised $57 million in a fourth round of funding. ...
|publisher= ''San Jose Business Journal''
|date= November 19, 2009
|url= http://sanjose.bizjournals.com/sanjose/stories/2009/11/16/daily78.html
|accessdate= 2010-01-26
}}</ref> Another suggests total equity financing since inception, as of January 2010, is in the range of $150 million, primarily from [[venture capital]] funding.<ref name=tws26jan14>{{cite news
|author= PR Newswire
|title= Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook Rentals
|quote= Chegg.com ... announced today that it has successfully closed $57 million Series D equity funding,...
|publisher= ''Reuters''
|date= 2010-01-26
|url= http://www.reuters.com/article/idUS196206+19-Nov-2009+PRN20091119
|accessdate= 2010-01-26
}}</ref> Investors include [[Foundation Capital]], [[Insight Venture Partners]], [[Kleiner, Perkins, Caufield & Byers]], Pinnacle Ventures, and TriplePoint Capital.<ref name=tws26jan14/>

===Services===
Chegg ships books from a warehouse in [[Shepherdsville, Kentucky]], which is close to [[United Parcel Service|UPS]]'s [[Worldport (UPS air hub)|Worldport]] air hub facility. Students order books by entering the [[ISBN]], title, or author on the Chegg website. Textbooks can be rented by the term, such as a quarter or semester.<ref name="Iowa State Daily">[http://www.iowastatedaily.com/articles/2005/09/01/news/20050901-archive.txt/ Iowa State Daily]</ref> Textbooks are mailed in branded bright orange boxes. At the end of the term, students receive, by email, a pre-paid postage [[barcode]], which they print and affix to any box.<ref name="Iowa State Daily"/> Students must pay late fees if the book is not postmarked by the deadline. Chegg permits "reasonable highlighting" in books but doesn't permit writing in them.<ref>{{cite news|date=January 11, 2009|url=http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm/ |title=Chegg: Rashid N.|work=USA Today]|deadurl=yes}} {{Dead link|date=April 2014|bot=RjwilmsiBot}}</ref> The company offers a 21 day money-back guarantee for "any reason". Further, Chegg has a program of buying used textbooks from students to increase inventory. Chegg also sells books that may not be rental candidates because of student kits or other consumables.{{citation needed|date=January 2014}}

===Green marketing promotion===
Chegg has an arrangement with American Forests' Global Releaf Program such that every book rented or sold means that one tree is planted. The firm claims that over five million trees have been planted.<ref>{{cite web|url=http://www.chegg.com/ecofriendly/|website=Chegg.com|title=Ecofriendly}}</ref><ref>{{cite web | title=Global Relief: Ecofriendly | publisher=AmericanForests.org | url=http://www.americanforests.org/global_releaf/ }}</ref>

===Controversy===
Chegg makes it difficult for users to delete an account. A user must chat or call to have it deleted, but Chegg retains the last four digits of the user's credit card.{{citation needed|date=January 2014}}

===History===
In 2001, Josh Carlson, Mike Seager, and Mark Fiddelke created the precursor to the business called Cheggpost.com, a [[Craigslist]]-type classified service for college students at [[Iowa State University]]. Aayush Phumbhra, who attended [[Iowa State University]] and was an avid Cheggpost.com user, approached Carlson in late 2003 with the idea of taking the company national. Phumbhra mentioned the service to a friend, Osman Rashid, who saw potential in the idea, joined as [[chief executive officer]] to help fund the company in 2005, and formally launched Chegg, Inc., which was incorporated in August. Carlson remained until February 2006 and then left to pursue other interests. In April 2006, Chegg found some initial investors, including Sam Spadafora, Mike Maples, and others. The co-founders quit their regular jobs to focus on Chegg full-time. They tested services, acquired three college classifieds businesses, and publicized Chegg via campus campaigns at SUNY Canton and word-of-mouth. In summer 2007, the firm launched "textbookflix.com", which used a textbook rental model modeled after [[Netflix]].<ref>[http://www.newsweek.com/id/40918/ ''Newsweek'']</ref> Rashid and Phumbhra decided to switch the "textbookflix" name to "Chegg.com" in December 2007. The firm has enjoyed strong growth;<ref>[http://www.bloomberg.com/apps/news?pid=20601204&sid=aE6qkSD26c74/ Bloomberg]</ref> according to a company spokesperson, Chegg rented its two millionth book in 2010.<ref>[http://www.kmph.com/Global/story.asp?S=11801303&nav=menu612_10_1_4 Fox]</ref> Chegg also went on to acquire six separate companies in 14 months, mostly revolving around the higher education space.<ref>[http://mashable.com/2011/08/19/cheggs-acquisition/]</ref> These companies include Courserank, [[Cramster.com]], [[Notehall]], [[Student of Fortune]], [[Zinch]], 3D3R.<ref>[http://www.crunchbase.com/company/chegg]</ref> In June 2014, Chegg announced that it purchased [[InstaEDU]], an online tutoring service, for $30 million.<ref>{{cite news|last1=Griffith|first1=Erin|title=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|url=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|publisher=Fortune Magazine}}</ref>

===IPO===
Chegg began trading shares publicly on the [[New York Stock Exchange]] on November 13, 2013. According to the ''San Jose Business Times'', the [[Initial public offering|IPO]] raised $187.5 million and gave it an initial [[Market capitalization|market cap]] of about $1.1 billion.<ref>{{cite news| url=http://www.bizjournals.com/sanjose/news/2013/11/12/chegg-tops-ipo-targets-valuation.html | title=Chegg stock stumbles after IPO tops targets}}</ref>

==See also==
* [[Book rental service]]

==External links==
* [http://www.chegg.com/ Official site]

==Similar Sites==
*[http://www.syllabusrate.com Syllabus Rate]
*[http://www.coursehero.com Course Hero]
*[http://www.ratemyprofessors.com Rate My Professors]
*[http://www.cramster.com Cramster]
*[http://www.half.com Half]
*[http://www.amazon.com Amazon]
*[http://www.notehall.com Note Hall]

==References==
{{Reflist|2}}

[[Category:Online retail companies of the United States]]
[[Category:Companies based in Santa Clara, California]]
[[Category:Textbook business]]
[[Category:Book selling websites]]
[[Category:Internet properties established in 2005]]
[[Category:Book rental]]

Chegg

2014-06-24T17:33:10Z

14.139.128.11:

{{Advert|date=July 2012}}
{{Infobox dot-com company
|company_name = Chegg, Inc.
|company_logo = [[File:Current Chegg Logo.jpg|225px|Current Chegg Logo]]
|company_type = Public company
|traded_as ={{NYSE|CHGG}}
|company_slogan = ''Save Time, Save Money, and Get Smarter''
|foundation = 2005
|founder = [[Osman Rashid]]
|location = [[Santa Clara, California|Santa Clara]], [[California|CA]]
|key_people = [[Dan Rosensweig]], CEO Aayush Phumbhra, Founder
|industry = [[Education]]
|products = Online [[textbook]] rental, eTextbooks, [[homework]] help, course scheduling and review, and scholarships via [[Zinch]].
|num_employees = 300+ (July 2012)
|homepage = http://www.chegg.com/
}}
'''Chegg''' is an academic company based in [[Santa Clara, California]], that specializes in online [[textbook]] rentals (both in physical and digital formats), [[homework]] help, [[scholarships]], course reviews and [[internship]] matching. It is meant to help students in [[high school]] and [[college]]. The company was created in the [[United States]] by three [[Iowa State University]] students in 2001 and was founded by entrepreneur Aayush Phumbhra.<ref name="tws26janab">{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The name ''Chegg'' is a contraction of the words ''chicken'' and ''egg'', based on the founders’ experience after graduating from college: they could not land a job without experience, but could not get experience without a job, a ''[[chicken or the egg]]'' type of quandary.<ref name=tws26jan4b/>

==Business model==
To many college students, textbooks are quite expensive and often priced higher than $100 per book. Students don't always require the books after each semester and there was no reliable way to sell them. One estimate was that college students spent $667 annually on books in 2009 on average.<ref name=tws26janbv334/> A second estimate was $1000 per year,<ref name=tws26jan12>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> with signs that textbook prices were increasing faster than [[inflation]].<ref name=tws26jan12/> Moreover, some college bookstores would offer to buy back the used books for a fraction of their original price.<ref name="tws26janab"/>

The founders began noticing the trend of online rental from the success of services like [[Netflix]].<ref name=tws26jan4>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... the inspiration was Netflix. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> Consequently, in the summer of 2007, Rashid and Phumbhra re-positioned the company along the lines of [[Netflix]] as a way to rent textbooks to students.<ref name="tws26janab"/><ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Since Chegg had little money initially, when an order came in Rashid would buy the book using a credit card and have it shipped to the student until automation came later.<ref name=tws26jan4c/> At one point, with a huge volume of traffic on his credit card, his credit card firm suspected fraud, but Rashid was able to persuade the credit supplier to extend credit using multiple numbers of cards.<ref name=tws26jan4c>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... They would buy the book using Mr. Rashid’s American Express card and have it shipped to the student. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Books normally rent around half the retail price; for example, a macroeconomics textbook priced at $122 at a college bookstore would rent for $65 at Chegg.<ref name=tws26jan4d>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> But savings varied from book to book.<ref>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Stories in campus newspapers helped spread the idea. One senior at [[Arizona State University]] calculated he would spend about half as much renting books than buying them for one semester.<ref name=tws26jan4b>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... calculated that his bill for books that semester would have been $334 with Chegg, far less than the $657 he paid. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The idea clicked. In 2008, the firm hired the former chief executive of [[Match.com]], Jim Safka, to run the firm.<ref name=tws26jan>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... Jim Safka, a former chief executive of Match.com and Ask.com who was recently recruited to run Chegg, ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> In 2008, revenues were about $10 million; in 2009, revenues in January alone were $10 million, according to Safka.<ref name=tws26jan/> The firm has raised additional capital from [[venture capitalist]]s. The company also started a campus representative program, which paid the enrolled college students per referral for purchases made by other college students.<ref name=tws26jan3>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= Based on that kind of growth, the company was able to raise $25 million in December ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

In January 2009, ''[[USA Today]]'' reporter Julie Schmit described Chegg as a "leader" in the "burgeoning arena of college textbook rentals."<ref name=tws26jan11>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= The company he co-founded, Chegg, is a leader in the burgeoning arena of college textbook rentals. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> The firm had 55 customer service reps at that point.<ref name=tws26jan11a21a>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= Chegg is headquartered ... Trash bins burst with soft-drink cans, paper plates and discarded snacks. ... There's even a cat: Mongo.
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref>

Since many textbooks become out-of-date quickly, often replaced with new versions, a key to profitability will be how long a book can be re-rented, or recycled; in the market for rental cars, for example, firms such as [[Hertz Rent-a-Car|Hertz]] and [[Avis Rent a Car System|Avis]] buy new cars but sell them after about a year or two of service. But what is the useful life of a rented book? "The market can be tricky," said market analyst Kathy Mickey, because professors must use the same books for several semesters in order for book-rental companies to make money on the programs.<ref name=tws26janbv334ab/>

==Competitors==
The college textbook market has a variety of competitors. While the main source of books for college students is college bookstores, there is an increasing number of options.<ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= ... Competitors include eCampus.com, BookRenter.com [http://www.060.com/pMMMM Bookrenter Official Site] and CampusBookRentals.com. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Bookseller [[Barnes & Noble]], which owns 636 college bookstores, began its own textbook rental program in January 2010, largely patterned along the lines of Chegg's service. One report is that Barnes & Noble will rent books at about 42% of their original price, on average.<ref name=tws26janbv334>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... Bookseller Barnes & Noble is launching a textbook rental program for college students, making it the newest entrant in a growing field. ...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> Students can also rent textbooks from their college bookstore or online, with orders shipped to their college bookstore for pickup, according to one [[Associated Press]] repor.<ref name=tws26janbv334/>

The [[United States Congress|U.S. Congress]] set aside $10 million to encourage college bookstores to rent textbooks,<ref name=tws26janbv334ab>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... because Congress last year set aside $10 million to provide grants for college bookstores to start rental programs...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> so bookstores are starting a up rental programs as well. Follett Higher Education Group started up a rental program in 2009.<ref name=tws26janbv334ab/>

''[[Wall Street Journal]]'' reporter Peter King compared several options for textbook rentals in April, 2009.<ref name=tws26jan12ab>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= To see how the process works, we ordered textbooks from three rental companies: BookRenter.com, Campus Book Rentals and Chegg; and one textbook seller, Textbooks.com, which doesn't rent books, but offers guaranteed buybacks on some texts, making those books a quasi-rental.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> He compared firms such as BookRenter.com, Campus Book Rentals, Chegg, and Textbooks.com which sells textbooks online but offers a guaranteed buyback later, making these books "quasi-rentals".<ref name=tws26jan12ab/> King compared offerings related to an expensive accounting textbook<ref name=tws26jan12cd>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= We decided to check prices and availability ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> and noted some confusion with book packages, with return labels differing from the firms which had been ordered from; figuring out that the original sources were Campus Book Rentals and Chegg required matching the shipping tracking orders with the email invoices.<ref name=tws26jan12ef>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... Only by matching the shipping tracking numbers with our email invoices could we figure out these were the books we ordered from Campus Book Rentals and Chegg.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> A Chegg spokesperson said the firm sometimes uses "strategic partners" if a particular book isn't in its warehouse, but the reporter wondered whether the use of third party suppliers might cause confusion when books needed to be returned at the end of the semester.<ref name=tws26jan12gh>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= A Chegg spokeswoman later told us the company sometimes uses "strategic partners" if the book isn't in its warehouse. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Chegg was the "most expensive rental" and charged sales tax.<ref name=tws26jan12gh/> The least expensive alternative was Textbooks.com, although this firm required an upfront expense of $117.50; King surmised the upfront payout would mean college students had less money available during the semester.<ref name=tws26jan12gh/> In all cases, books had to be returned by the deadline to make the cost savings worthwhile.<ref name=tws26jan12ij1>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= With book seller Textbooks.com, the book has to be returned by a set deadline to get the guaranteed buyback. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> The online alternatives were substantially better than buying the book from the college bookstore and selling it back to that bookstore at the end of the semester.<ref name=tws26jan12ij2>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= In contrast, buying a used copy at the ASU bookstore costs $125.25. Subtracting the bookstore's estimated buyback price of $55 would leave us with a net cost of $70.25.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> In a test using a different book, Chegg had the lowest price, while other firms did not even carry the book.<ref name=tws26jan12ij3>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... We did a spot check of prices for the "Norton Field Guide to Writing" (list price, new: $48), which is widely assigned for English composition courses. Chegg would rent it for $9.99 for 60 days. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Textbooks.com, according to the report, does not offer buyback chances to all books it sells.<ref name=tws26jan12ij3/>

===Finances===
One report is that the firm first received $2.2 million in financing in January 2007, led by Mike Maples (through Maples Investments, now called [[Floodgate Fund]]) and Gabriel Venture Partners. In August 2008, Oren Zeev is believed to have invested $4.7 million,<ref>http://www.themarker.com/technation/1.2098573</ref> then with Primera Capital, led the Series B round of $7 million, which included participation from prior investors Gabriel Venture Partners and Mike Maples. One source suggests the firm raised $57 million in November 2009.<ref name=tws26jan13>{{cite news
|title= Book rental company Chegg raises $57M
|quote= Online textbook rental company Chegg.com Inc. said Thursday it raised $57 million in a fourth round of funding. ...
|publisher= ''San Jose Business Journal''
|date= November 19, 2009
|url= http://sanjose.bizjournals.com/sanjose/stories/2009/11/16/daily78.html
|accessdate= 2010-01-26
}}</ref> Another suggests total equity financing since inception, as of January 2010, is in the range of $150 million, primarily from [[venture capital]] funding.<ref name=tws26jan14>{{cite news
|author= PR Newswire
|title= Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook Rentals
|quote= Chegg.com ... announced today that it has successfully closed $57 million Series D equity funding,...
|publisher= ''Reuters''
|date= 2010-01-26
|url= http://www.reuters.com/article/idUS196206+19-Nov-2009+PRN20091119
|accessdate= 2010-01-26
}}</ref> Investors include [[Foundation Capital]], [[Insight Venture Partners]], [[Kleiner, Perkins, Caufield & Byers]], Pinnacle Ventures, and TriplePoint Capital.<ref name=tws26jan14/>

===Services===
Chegg ships books from a warehouse in [[Shepherdsville, Kentucky]], which is close to [[United Parcel Service|UPS]]'s [[Worldport (UPS air hub)|Worldport]] air hub facility. Students order books by entering the [[ISBN]], title, or author on the Chegg website. Textbooks can be rented by the term, such as a quarter or semester.<ref name="Iowa State Daily">[http://www.iowastatedaily.com/articles/2005/09/01/news/20050901-archive.txt/ Iowa State Daily]</ref> Textbooks are mailed in branded bright orange boxes. At the end of the term, students receive, by email, a pre-paid postage [[barcode]], which they print and affix to any box.<ref name="Iowa State Daily"/> Students must pay late fees if the book is not postmarked by the deadline. Chegg permits "reasonable highlighting" in books but doesn't permit writing in them.<ref>{{cite news|date=January 11, 2009|url=http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm/ |title=Chegg: Rashid N.|work=USA Today]|deadurl=yes}} {{Dead link|date=April 2014|bot=RjwilmsiBot}}</ref> The company offers a 21 day money-back guarantee for "any reason". Further, Chegg has a program of buying used textbooks from students to increase inventory. Chegg also sells books that may not be rental candidates because of student kits or other consumables.{{citation needed|date=January 2014}}

===Green marketing promotion===
Chegg has an arrangement with American Forests' Global Releaf Program such that every book rented or sold means that one tree is planted. The firm claims that over five million trees have been planted.<ref>{{cite web|url=http://www.chegg.com/ecofriendly/|website=Chegg.com|title=Ecofriendly}}</ref><ref>{{cite web | title=Global Relief: Ecofriendly | publisher=AmericanForests.org | url=http://www.americanforests.org/global_releaf/ }}</ref>

===Controversy===
Chegg makes it difficult for users to delete an account. A user must chat or call to have it deleted, but Chegg retains the last four digits of the user's credit card.{{citation needed|date=January 2014}}

===History===
In 2001, Josh Carlson, Mike Seager, and Mark Fiddelke created the precursor to the business called Cheggpost.com, a [[Craigslist]]-type classified service for college students at [[Iowa State University]]. Aayush Phumbhra, who attended [[Iowa State University]] and was an avid Cheggpost.com user, approached Carlson in late 2003 with the idea of taking the company national. Phumbhra mentioned the service to a friend, Osman Rashid, who saw potential in the idea, joined as [[chief executive officer]] to help fund the company in 2005, and formally launched Chegg, Inc., which was incorporated in August. Carlson remained until February 2006 and then left to pursue other interests. In April 2006, Chegg found some initial investors, including Sam Spadafora, Mike Maples, and others. The co-founders quit their regular jobs to focus on Chegg full-time. They tested services, acquired three college classifieds businesses, and publicized Chegg via campus campaigns at SUNY Canton and word-of-mouth. In summer 2007, the firm launched "textbookflix.com", which used a textbook rental model modeled after [[Netflix]].<ref>[http://www.newsweek.com/id/40918/ ''Newsweek'']</ref> Rashid and Phumbhra decided to switch the "textbookflix" name to "Chegg.com" in December 2007. The firm has enjoyed strong growth;<ref>[http://www.bloomberg.com/apps/news?pid=20601204&sid=aE6qkSD26c74/ Bloomberg]</ref> according to a company spokesperson, Chegg rented its two millionth book in 2010.<ref>[http://www.kmph.com/Global/story.asp?S=11801303&nav=menu612_10_1_4 Fox]</ref> Chegg also went on to acquire six separate companies in 14 months, mostly revolving around the higher education space.<ref>[http://mashable.com/2011/08/19/cheggs-acquisition/]</ref> These companies include Courserank, [[Cramster.com]], [[Notehall]], [[Student of Fortune]], [[Zinch]], 3D3R.<ref>[http://www.crunchbase.com/company/chegg]</ref> In June 2014, Chegg announced that it purchased [[InstaEDU]], an online tutoring service, for $30 million.<ref>{{cite news|last1=Griffith|first1=Erin|title=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|url=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|publisher=Fortune Magazine}}</ref>

===IPO===
Chegg began trading shares publicly on the [[New York Stock Exchange]] on November 13, 2013. According to the ''San Jose Business Times'', the [[Initial public offering|IPO]] raised $187.5 million and gave it an initial [[Market capitalization|market cap]] of about $1.1 billion.<ref>{{cite news| url=http://www.bizjournals.com/sanjose/news/2013/11/12/chegg-tops-ipo-targets-valuation.html | title=Chegg stock stumbles after IPO tops targets}}</ref>

==See also==
* [[Book rental service]]

==External links==
* [http://www.chegg.com/ Official site]

==Similar Sites==
*[http://www.syllabusrate.com Syllabus Rate]
*[http://www.coursehero.com Course Hero]
*[http://www.ratemyprofessors.com Rate My Professors]
*[http://www.cramster.com Cramster]
*[http://www.half.com Half]
*[http://www.amazon.com Amazon]
*[http://www.notehall.com Note Hall]

==References==
{{Reflist|2}}

[[Category:Online retail companies of the United States]]
[[Category:Companies based in Santa Clara, California]]
[[Category:Textbook business]]
[[Category:Book selling websites]]
[[Category:Internet properties established in 2005]]
[[Category:Book rental]]

Chegg

2014-06-24T17:31:49Z

14.139.128.11:

{{Advert|date=July 2012}}
{{Infobox dot-com company
|company_name = Chegg, Inc.
|company_logo = [[File:Current Chegg Logo.jpg|225px|Current Chegg Logo]]
|company_type = Public company
|traded_as ={{NYSE|CHGG}}
|company_slogan = ''Save Time, Save Money, and Get Smarter''
|foundation = 2005
|founder = [[Osman Rashid]]
|location = [[Santa Clara, California|Santa Clara]], [[California|CA]]
|key_people = [[Dan Rosensweig]], CEO Aayush Phumbhra, Founder
|industry = [[Education]]
|products = Online [[textbook]] rental, eTextbooks, [[homework]] help, course scheduling and review, and scholarships via [[Zinch]].
|num_employees = 300+ (July 2012)
|homepage = http://www.chegg.com/
}}
'''Chegg''' is an academic company based in [[Santa Clara, California]], that specializes in online [[textbook]] rentals (both in physical and digital formats), [[homework]] help, [[scholarships]], course reviews and [[internship]] matching. It is meant to help students in [[high school]] and [[college]]. The company was created in the [[United States]] by three [[Iowa State University]] students in 2001 and was founded by entrepreneur Aayush Phumbhra.<ref name="tws26janab">{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The name ''Chegg'' is a contraction of the words ''chicken'' and ''egg'', based on the founders’ experience after graduating from college: they could not land a job without experience, but could not get experience without a job, a ''[[chicken or the egg]]'' type of quandary.<ref name=tws26jan4b/>

==Business model==
To do many college students, textbooks are quite expensive and often priced higher than $100 per book. Students don't always require the books after each semester and there was no reliable way to sell them. One estimate was that college students spent $667 annually on books in 2009 on average.<ref name=tws26janbv334/> A second estimate was $1000 per year,<ref name=tws26jan12>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> with signs that textbook prices were increasing faster than [[inflation]].<ref name=tws26jan12/> Moreover, some college bookstores would offer to buy back the used books for a fraction of their original price.<ref name="tws26janab"/>

The founders began noticing the trend of online rental from the success of services like [[Netflix]].<ref name=tws26jan4>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... the inspiration was Netflix. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> Consequently, in the summer of 2007, Rashid and Phumbhra re-positioned the company along the lines of [[Netflix]] as a way to rent textbooks to students.<ref name="tws26janab"/><ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Since Chegg had little money initially, when an order came in Rashid would buy the book using a credit card and have it shipped to the student until automation came later.<ref name=tws26jan4c/> At one point, with a huge volume of traffic on his credit card, his credit card firm suspected fraud, but Rashid was able to persuade the credit supplier to extend credit using multiple numbers of cards.<ref name=tws26jan4c>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... They would buy the book using Mr. Rashid’s American Express card and have it shipped to the student. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Books normally rent around half the retail price; for example, a macroeconomics textbook priced at $122 at a college bookstore would rent for $65 at Chegg.<ref name=tws26jan4d>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> But savings varied from book to book.<ref>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... how many times a given book can be rented. The savings can vary from book to book. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

Stories in campus newspapers helped spread the idea. One senior at [[Arizona State University]] calculated he would spend about half as much renting books than buying them for one semester.<ref name=tws26jan4b>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... calculated that his bill for books that semester would have been $334 with Chegg, far less than the $657 he paid. ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> The idea clicked. In 2008, the firm hired the former chief executive of [[Match.com]], Jim Safka, to run the firm.<ref name=tws26jan>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= ... Jim Safka, a former chief executive of Match.com and Ask.com who was recently recruited to run Chegg, ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref> In 2008, revenues were about $10 million; in 2009, revenues in January alone were $10 million, according to Safka.<ref name=tws26jan/> The firm has raised additional capital from [[venture capitalist]]s. The company also started a campus representative program, which paid the enrolled college students per referral for purchases made by other college students.<ref name=tws26jan3>{{cite news
|author= Miguel Helft
|title= We Rent Movies, So Why Not Textbooks?
|quote= Based on that kind of growth, the company was able to raise $25 million in December ...
|publisher= ''The New York Times''
|date= July 4, 2009
|url= http://www.nytimes.com/2009/07/05/business/05ping.html
|accessdate= 2010-01-26
}}</ref>

In January 2009, ''[[USA Today]]'' reporter Julie Schmit described Chegg as a "leader" in the "burgeoning arena of college textbook rentals."<ref name=tws26jan11>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= The company he co-founded, Chegg, is a leader in the burgeoning arena of college textbook rentals. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> The firm had 55 customer service reps at that point.<ref name=tws26jan11a21a>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= Chegg is headquartered ... Trash bins burst with soft-drink cans, paper plates and discarded snacks. ... There's even a cat: Mongo.
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref>

Since many textbooks become out-of-date quickly, often replaced with new versions, a key to profitability will be how long a book can be re-rented, or recycled; in the market for rental cars, for example, firms such as [[Hertz Rent-a-Car|Hertz]] and [[Avis Rent a Car System|Avis]] buy new cars but sell them after about a year or two of service. But what is the useful life of a rented book? "The market can be tricky," said market analyst Kathy Mickey, because professors must use the same books for several semesters in order for book-rental companies to make money on the programs.<ref name=tws26janbv334ab/>

==Competitors==
The college textbook market has a variety of competitors. While the main source of books for college students is college bookstores, there is an increasing number of options.<ref name=tws26jan11a21ax1>{{cite news
|author= Julie Schmit
|title= Chegg CEO Rashid applies Netflix concept to textbooks
|quote= ... Competitors include eCampus.com, BookRenter.com [http://www.060.com/pMMMM Bookrenter Official Site] and CampusBookRentals.com. ...
|publisher= ''USA Today''
|date= 2009-01-12
|url= http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm
|accessdate= 2010-01-26
}}</ref> Bookseller [[Barnes & Noble]], which owns 636 college bookstores, began its own textbook rental program in January 2010, largely patterned along the lines of Chegg's service. One report is that Barnes & Noble will rent books at about 42% of their original price, on average.<ref name=tws26janbv334>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... Bookseller Barnes & Noble is launching a textbook rental program for college students, making it the newest entrant in a growing field. ...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> Students can also rent textbooks from their college bookstore or online, with orders shipped to their college bookstore for pickup, according to one [[Associated Press]] repor.<ref name=tws26janbv334/>

The [[United States Congress|U.S. Congress]] set aside $10 million to encourage college bookstores to rent textbooks,<ref name=tws26janbv334ab>{{cite news
|author= Associated Press
|title= Barnes & Noble starts textbook rentals
|quote= ... because Congress last year set aside $10 million to provide grants for college bookstores to start rental programs...
|publisher= ''San Jose Mercury News''
|date= 2010-01-11
|url= http://www.mercurynews.com/education/ci_14165487?source=rss
|accessdate= 2010-01-26
}}</ref> so bookstores are starting a up rental programs as well. Follett Higher Education Group started up a rental program in 2009.<ref name=tws26janbv334ab/>

''[[Wall Street Journal]]'' reporter Peter King compared several options for textbook rentals in April, 2009.<ref name=tws26jan12ab>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= To see how the process works, we ordered textbooks from three rental companies: BookRenter.com, Campus Book Rentals and Chegg; and one textbook seller, Textbooks.com, which doesn't rent books, but offers guaranteed buybacks on some texts, making those books a quasi-rental.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> He compared firms such as BookRenter.com, Campus Book Rentals, Chegg, and Textbooks.com which sells textbooks online but offers a guaranteed buyback later, making these books "quasi-rentals".<ref name=tws26jan12ab/> King compared offerings related to an expensive accounting textbook<ref name=tws26jan12cd>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= We decided to check prices and availability ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> and noted some confusion with book packages, with return labels differing from the firms which had been ordered from; figuring out that the original sources were Campus Book Rentals and Chegg required matching the shipping tracking orders with the email invoices.<ref name=tws26jan12ef>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... Only by matching the shipping tracking numbers with our email invoices could we figure out these were the books we ordered from Campus Book Rentals and Chegg.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> A Chegg spokesperson said the firm sometimes uses "strategic partners" if a particular book isn't in its warehouse, but the reporter wondered whether the use of third party suppliers might cause confusion when books needed to be returned at the end of the semester.<ref name=tws26jan12gh>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= A Chegg spokeswoman later told us the company sometimes uses "strategic partners" if the book isn't in its warehouse. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Chegg was the "most expensive rental" and charged sales tax.<ref name=tws26jan12gh/> The least expensive alternative was Textbooks.com, although this firm required an upfront expense of $117.50; King surmised the upfront payout would mean college students had less money available during the semester.<ref name=tws26jan12gh/> In all cases, books had to be returned by the deadline to make the cost savings worthwhile.<ref name=tws26jan12ij1>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= With book seller Textbooks.com, the book has to be returned by a set deadline to get the guaranteed buyback. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> The online alternatives were substantially better than buying the book from the college bookstore and selling it back to that bookstore at the end of the semester.<ref name=tws26jan12ij2>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= In contrast, buying a used copy at the ASU bookstore costs $125.25. Subtracting the bookstore's estimated buyback price of $55 would leave us with a net cost of $70.25.
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> In a test using a different book, Chegg had the lowest price, while other firms did not even carry the book.<ref name=tws26jan12ij3>{{cite news
|author= Peter King
|title= A Textbook Case of Renting Books
|quote= ... We did a spot check of prices for the "Norton Field Guide to Writing" (list price, new: $48), which is widely assigned for English composition courses. Chegg would rent it for $9.99 for 60 days. ...
|publisher= ''Wall Street Journal''
|date= April 23, 2009
|url= http://online.wsj.com/article/SB124045232885846381.html
|accessdate= 2010-01-26
}}</ref> Textbooks.com, according to the report, does not offer buyback chances to all books it sells.<ref name=tws26jan12ij3/>

===Finances===
One report is that the firm first received $2.2 million in financing in January 2007, led by Mike Maples (through Maples Investments, now called [[Floodgate Fund]]) and Gabriel Venture Partners. In August 2008, Oren Zeev is believed to have invested $4.7 million,<ref>http://www.themarker.com/technation/1.2098573</ref> then with Primera Capital, led the Series B round of $7 million, which included participation from prior investors Gabriel Venture Partners and Mike Maples. One source suggests the firm raised $57 million in November 2009.<ref name=tws26jan13>{{cite news
|title= Book rental company Chegg raises $57M
|quote= Online textbook rental company Chegg.com Inc. said Thursday it raised $57 million in a fourth round of funding. ...
|publisher= ''San Jose Business Journal''
|date= November 19, 2009
|url= http://sanjose.bizjournals.com/sanjose/stories/2009/11/16/daily78.html
|accessdate= 2010-01-26
}}</ref> Another suggests total equity financing since inception, as of January 2010, is in the range of $150 million, primarily from [[venture capital]] funding.<ref name=tws26jan14>{{cite news
|author= PR Newswire
|title= Chegg.com Secures $112 Million to Fund Explosive Growth in Online Textbook Rentals
|quote= Chegg.com ... announced today that it has successfully closed $57 million Series D equity funding,...
|publisher= ''Reuters''
|date= 2010-01-26
|url= http://www.reuters.com/article/idUS196206+19-Nov-2009+PRN20091119
|accessdate= 2010-01-26
}}</ref> Investors include [[Foundation Capital]], [[Insight Venture Partners]], [[Kleiner, Perkins, Caufield & Byers]], Pinnacle Ventures, and TriplePoint Capital.<ref name=tws26jan14/>

===Services===
Chegg ships books from a warehouse in [[Shepherdsville, Kentucky]], which is close to [[United Parcel Service|UPS]]'s [[Worldport (UPS air hub)|Worldport]] air hub facility. Students order books by entering the [[ISBN]], title, or author on the Chegg website. Textbooks can be rented by the term, such as a quarter or semester.<ref name="Iowa State Daily">[http://www.iowastatedaily.com/articles/2005/09/01/news/20050901-archive.txt/ Iowa State Daily]</ref> Textbooks are mailed in branded bright orange boxes. At the end of the term, students receive, by email, a pre-paid postage [[barcode]], which they print and affix to any box.<ref name="Iowa State Daily"/> Students must pay late fees if the book is not postmarked by the deadline. Chegg permits "reasonable highlighting" in books but doesn't permit writing in them.<ref>{{cite news|date=January 11, 2009|url=http://www.usatoday.com/money/companies/management/entre/2009-01-11-chegg-rashid_N.htm/ |title=Chegg: Rashid N.|work=USA Today]|deadurl=yes}} {{Dead link|date=April 2014|bot=RjwilmsiBot}}</ref> The company offers a 21 day money-back guarantee for "any reason". Further, Chegg has a program of buying used textbooks from students to increase inventory. Chegg also sells books that may not be rental candidates because of student kits or other consumables.{{citation needed|date=January 2014}}

===Green marketing promotion===
Chegg has an arrangement with American Forests' Global Releaf Program such that every book rented or sold means that one tree is planted. The firm claims that over five million trees have been planted.<ref>{{cite web|url=http://www.chegg.com/ecofriendly/|website=Chegg.com|title=Ecofriendly}}</ref><ref>{{cite web | title=Global Relief: Ecofriendly | publisher=AmericanForests.org | url=http://www.americanforests.org/global_releaf/ }}</ref>

===Controversy===
Chegg makes it difficult for users to delete an account. A user must chat or call to have it deleted, but Chegg retains the last four digits of the user's credit card.{{citation needed|date=January 2014}}

===History===
In 2001, Josh Carlson, Mike Seager, and Mark Fiddelke created the precursor to the business called Cheggpost.com, a [[Craigslist]]-type classified service for college students at [[Iowa State University]]. Aayush Phumbhra, who attended [[Iowa State University]] and was an avid Cheggpost.com user, approached Carlson in late 2003 with the idea of taking the company national. Phumbhra mentioned the service to a friend, Osman Rashid, who saw potential in the idea, joined as [[chief executive officer]] to help fund the company in 2005, and formally launched Chegg, Inc., which was incorporated in August. Carlson remained until February 2006 and then left to pursue other interests. In April 2006, Chegg found some initial investors, including Sam Spadafora, Mike Maples, and others. The co-founders quit their regular jobs to focus on Chegg full-time. They tested services, acquired three college classifieds businesses, and publicized Chegg via campus campaigns at SUNY Canton and word-of-mouth. In summer 2007, the firm launched "textbookflix.com", which used a textbook rental model modeled after [[Netflix]].<ref>[http://www.newsweek.com/id/40918/ ''Newsweek'']</ref> Rashid and Phumbhra decided to switch the "textbookflix" name to "Chegg.com" in December 2007. The firm has enjoyed strong growth;<ref>[http://www.bloomberg.com/apps/news?pid=20601204&sid=aE6qkSD26c74/ Bloomberg]</ref> according to a company spokesperson, Chegg rented its two millionth book in 2010.<ref>[http://www.kmph.com/Global/story.asp?S=11801303&nav=menu612_10_1_4 Fox]</ref> Chegg also went on to acquire six separate companies in 14 months, mostly revolving around the higher education space.<ref>[http://mashable.com/2011/08/19/cheggs-acquisition/]</ref> These companies include Courserank, [[Cramster.com]], [[Notehall]], [[Student of Fortune]], [[Zinch]], 3D3R.<ref>[http://www.crunchbase.com/company/chegg]</ref> In June 2014, Chegg announced that it purchased [[InstaEDU]], an online tutoring service, for $30 million.<ref>{{cite news|last1=Griffith|first1=Erin|title=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|url=http://fortune.com/2014/06/03/chegg-buys-instaedu-in-transition-away-from-book-rentals/|publisher=Fortune Magazine}}</ref>

===IPO===
Chegg began trading shares publicly on the [[New York Stock Exchange]] on November 13, 2013. According to the ''San Jose Business Times'', the [[Initial public offering|IPO]] raised $187.5 million and gave it an initial [[Market capitalization|market cap]] of about $1.1 billion.<ref>{{cite news| url=http://www.bizjournals.com/sanjose/news/2013/11/12/chegg-tops-ipo-targets-valuation.html | title=Chegg stock stumbles after IPO tops targets}}</ref>

==See also==
* [[Book rental service]]

==External links==
* [http://www.chegg.com/ Official site]

==Similar Sites==
*[http://www.syllabusrate.com Syllabus Rate]
*[http://www.coursehero.com Course Hero]
*[http://www.ratemyprofessors.com Rate My Professors]
*[http://www.cramster.com Cramster]
*[http://www.half.com Half]
*[http://www.amazon.com Amazon]
*[http://www.notehall.com Note Hall]

==References==
{{Reflist|2}}

[[Category:Online retail companies of the United States]]
[[Category:Companies based in Santa Clara, California]]
[[Category:Textbook business]]
[[Category:Book selling websites]]
[[Category:Internet properties established in 2005]]
[[Category:Book rental]]

Krishnammal Jagannathan

2013-05-25T10:25:58Z

14.139.128.11:

'''Krishnammal Jagannathan''' ({{lang-ta|கிருஷ்ணம்மாள் ஜெகநாதன்}}: born 1926) is a [[social service]] [[activist]] from the [[India]]n [[States and territories of India|state]] of [[Tamil Nadu]]. She and her husband, [[Sankaralingam Jagannathan]] (1912-2013), have protested against [[social injustice]] and they are well known as [[Gandhian]] activists. Her work includes upliftment of [[Dalits]], the landless, and the poor; she has sometimes fought against governments as well as big industries.

She was earlier involved in the [[Indian independence movement]], along with her husband, and was also a close associate of [[Vinoba Bhave]]. She has received several awards and recently has been listed for [[Right Livelihood Award]] for 2008, which she would share with four others, including her husband.

[[File:Krishnammal and sankaralingam.jpg|thumb|Krishnammal and sankaralingam]]

==Early life==

Krishnammal Jagannathan was born to a landless [[Dalit]] family in 1926.<ref name=RLA>[http://www.rightlivelihood.org/jagannathan.html Krishnammal and Sankaralingam Jagannathan / LAFTI (India)] — on Right Livelihood Awards' website</ref> Her first encounter with social injustice and poverty was by looking at her mother Nagammal who had to toil very hard and had to work even when she was in advanced stage of [[pregnancy]].<ref name=amma/> Despite being from a poor family she managed university education and was soon involved with the [[Gandhian]] [[Sarvodaya Movement]]. It was through Sarvodaya did she meet Sankaralingam Jagannathan, who was much later to be her husband. Sankaralingam Jagannathan hailed from a wealthy family, yet gave up his college studies in 1930 in response to Gandhi's call for [[non-cooperation movement]] and [[civil disobedience]].<ref name=RLA/> At one stage Krishnammal even shared a stage with [[Gandhi]]<ref name=amma/> and also met [[Martin Luther King]].<ref>[http://chhs.sdsu.edu/announce-081105.php Krishnammal Jagannathan, Nov. 5, 2008] — SDSU College of Health and Human Service</ref> Sankaralinga later joined the [[Quit India Movement]] in 1942 and spent years in jail before India gained its [[Indian independence|independence]] in 1947.<ref name=RLA/> Having decided only to marry in independent India Sankaralingam and Krishnammal married in 1950.<ref name=amma/> She would later head the [[Salt Satyagraha]] march in [[Vedaranyam]], this time not in protest, but to commemorate the [[platinum jublee]] of the event in 2006.<ref>[http://www.hindu.com/2006/05/01/stories/2006050112320400.htm Congressmen re-enact Salt Satyagraha march] The Hindu</ref>

==Land to the landless==
Sankaralingam Jagannathan and Krishnammal Jagannathan believed that one of the key requirements for achieving a Gandhian society is by empowering the rural poor through redistribution of land to the landless. For two years between 1950 and 1952 Sankaralingam Jagannathan was with [[Vinoba Bhave]] in [[Northern India]] on his [[Bhoodan]] (land-gift) [[Padayatra]] (pilgrimage on foot), the march appealing to landlords to give one sixth of their land to the landless. Meanwhile Krishnammal completed her teacher-training course in [[Madras]] (now renamed Chennai). When Sankaralingam returned to Tamil Nadu to start the Bhoodhan movement the couple, until 1968, worked for land redistribution through Vinoba Bhave's [[Gramdan movement]] (Village Gift, the next phase of the land-gift movement), and through [[Satyagraha]] (non-violent resistance). Sankaralingam Jagannathan was imprisoned many times for this work. Between 1953 and 1967, the couple played an active role in the Bhoodhan movement spearheaded by Vinoba Bhave, through which about {{convert|4|e6acre|km2}} of land were distributed to thousands of landless poor across several Indian states.<ref name=RLA/>

After the burning of 42 [[Dalit]] [[Christians]]<ref name=amma/><ref>http://www.questia.com/googleScholar.qst;jsessionid=Mg3BJtbvvB2VQHhHLBTQX15JP1qwYhkSpbqWfyPpKRGyg2tdnhgC!-1371090394!547733517?docId=97732681 Indian Peasant Uprisings.
Journal article by Kathleen Gough; Bulletin of Concerned Asian Scholars, Vol. 8, 1976</ref> including women and children in [[Kilavenmani]] in [[Nagapattinam district]]<ref name=Seat>[http://www.seattleu.edu/opusprize/recipients_krishnammal.asp Krishnammal Jagannathan] Seattle University</ref> following a wage-dispute with the landlord<ref name=amma/> in 1968, the couple started to work in [[Thanjavur District]] in [[Tamil Nadu]] to concentrate on land reform issues.<ref name=RLA/> It was this incident that would inspire the couple, Krishnammal and Sankaralaingam to start the organisation LAFTI.<ref name=Seat/>

==Land for the Tillers' Freedom (LAFTI)==
Krishnammal along with her husband found [[Land for the Tiller' Freedom]] in 1981.<ref name=hindu1/>
The purpose of the organisation was to bring "''the landlords and landless poor to the negotiating table, obtain loans to enable the landless to buy land at reasonable price and then to help them work it cooperatively, so that the loans could be repaid''".<ref name=RLA/>

Although the initial response was lukewarm with banks unwilling to lend and the high rates of stamp duty, Krishnammal managed to go on and with the cause and by 2007, through LAFTI she had transferred {{convert|13000|acre|km2}} to about 13,000 families.<ref name=RLA/> Through LAFTI, she also conducts workshops to allow people, during the nonagricultural season, to support themselves through entrepreneurial efforts like [[mat weaving]], [[tailoring]], [[plumbing]], [[carpentry]], [[masonry]], [[computer education]] and [[electronics]]. LAFTI would gain such popularity that later even the [[Government of India]] would implement LAFTI's approach to increase the peaceful transfer of land.<ref name=Seat/>

==Protecting the coastal ecosystem==
===The issue===
From 1992 Krishnammal started working issues concerned with [[prawn]] farms along the coast of Tamil Nadu. This time the problems were not from the local landlords, but from large industries from cities such as [[Chennai]], [[Mumbai]], [[Kolkatta]], [[Delhi]] and [[Hyderabad, Andhra Pradesh|Hyderabad]] which occupied large areas of land for [[aquaculture]] along the coast, which not only threw the landless laborers out of employment but also converted fertile and cultivable land into salty deserts after a few years when the prawn companies moved on. The prawn farms also caused heavy seepage of [[seawater]] into the [[groundwater]] in the neighborhood, thus the local people were deprived of clean drinking water resources. The result is that even more small farmers sell their meager land-holdings to multinational prawn companies and move to the cities, filling urban slums.<ref name=RLA/>

===LAFTI and prawn industry===
To address prawn farm issue the Jagannathans organised the whole of LAFTI's village movement to raise awareness among the people to oppose the prawn farms. Since 1993, the villagers have offered Satygraha (non-violent resistance), through rallies, fasts, and demonstrations in protest of establishing the prawn farms. They have been beaten up by hired goons, their houses have been burnt, and LAFTI workers have been imprisoned, because of false accusations of looting and arson.<ref name=RLA/>

===Final victory===
Undeterred by this, Sankaralingam Jagannathan filed a 'public interest petition' in the Indian Supreme Court, which in turn asked NEERI (National Environmental Engineering Institute of India) to investigate the matter. NEERI's investigation report highlighted the environmental cost of the prawn farms to the nation and recommended all prawn farms within 500 meters of the coast to be banned. In December 1996, the [[Supreme Court]] issued a ruling against intensive [[shrimp]] farming in cultivable lands within 500 meters of the coastal area. It is said that because of the prawn farmers' local political influence, the Supreme Court judgement was not implemented on the ground. The legal battle around the prawn farms is still not resolved and the Jagannathans continue their struggle to establish non-exploitative, eco-friendly communities in the coastal areas of Tamil Nadu.<ref name=RLA/>

==Upliftment of women==
Krishnammal is also in working towards upliftment of women in Dalits and poor. She believes in mobilising women's cause by peaceful means.<ref>[http://www.hindu.com/2006/03/17/stories/2006031710070300.htm Fight discrimination by peaceful means] The Hindu</ref>

==Further achievements and honours==

Krishnammal Jagannathan, either independently or together with her husband, has established a total of seven non-governmental institutions for the poor. Besides this, Krishnammal Jagannathan has also played an active role in wider public life. She has been a Senate member of the Gandhigram Trust and University and of Madurai University. She was also a member of a number of local and state social welfare committees and a member of the National Committee on Education, the Land Reform Committee and the Planning Committee.<ref name=RLA/>

These activities have gained for the Jagannathans a high profile in India and they have won many prestigious Awards: the [[Swami Pranavananda Peace Award]] (1987); the [[Jamnalal Bajaj Award]] (1988)<ref>{{cite web |title=Jamnalal Bajaj Awards Archive |url=http://www.jamnalalbajajfoundation.org/awards/archives/2010 |date= |publisher=[[Jamnalal Bajaj Foundation]]}}</ref> and [[Padma Shri]] in 1989.<ref>{{cite web|title=Padma Awards Directory (1954-2009)|publisher=[[Ministry of Home Affairs (India)|Ministry of Home Affairs]]|url=http://www.mha.nic.in/pdfs/LST-PDAWD.pdf}}</ref><ref name=RLA/> In 1996 the couple received the [[Bhagavan Mahaveer Award]] "for propagating non-violence." In 1999 Krishnammal was awarded a [[Summit Foundation Award]] (Switzerland), and in 2008 she was awarded 'Opus Prize' by the [[University of Seattle]]<ref name=hindu1>[http://www.hindu.com/2008/09/15/stories/2008091554770600.htm Sarvodaya leader to get Opus Prize] — The Hindu</ref> and also [[Right Livelihood Award]] along with four others which included her husband.<ref name=RLA/> She is lovingly called as ''Amma'' (Mother in [[Tamil language|Tamil]]) by her followers.<ref name=amma>[http://news.oneindia.in/2008/10/02/gandhian-couple-get-alternate-nobel.html Gandhian' couple get alternate Nobel] — OneIndia.com</ref> She plans to use the award money for her projects rather than for herself.<ref>[http://www.hindu.com/2008/09/20/stories/2008092059740800.htm Opus Prize a divine gift for my housing programme, says Krishnammal] The Hindu</ref> Inspired by Amma's contribution of enabling more than 11000 poor and landless women to become landowners, a M.Phil research dissertation is dedicated to Amma. The dissertation is titled as ''Aspects of Agrarian History of Tamilakam:Region, Women and Technology during 16th and 17th Centuries AD'',submitted to Department of History, University of Hyderabad in 2009.

==References==
{{reflist}}

==External links==
* [http://rightlivelihoodaward.org/ Right Livelihood Award]

{{Persondata 
| NAME = Jagannathan, Krishnammal
| ALTERNATIVE NAMES =
| SHORT DESCRIPTION = Indian activist
| DATE OF BIRTH = 1926
| PLACE OF BIRTH =
| DATE OF DEATH =
| PLACE OF DEATH =
}}
{{DEFAULTSORT:Jagannathan, Krishnammal}}
[[Category:Gandhians]]
[[Category:Indian activists]]
[[Category:Indian independence activists]]
[[Category:Indian pacifists]]
[[Category:Indian women's rights activists]]
[[Category:Right Livelihood Award laureates]]
[[Category:1926 births]]
[[Category:Dalit activists]]
[[Category:Living people]]
[[Category:Indian social workers]]

Sheikh Noor-ud-din Wali

2013-01-21T15:21:23Z

14.139.128.11: /* Biography */

{{cleanup|reason=Unencyclopedic tone and style, hagiography, lack of academic sourcing|date=October 2012}}
'''Sheikh Noor-ud-din''', also known as '''Nund Rishi''', was a famous Kashmiri saint who belonged to the [[Rishi order]]. He was born in 1377 [[Common Era|CE]], corresponding to 779 [[Islamic calendar|Hijri]] and he died at the age of 63 years in the year of 1440 CE or 842 [[Islamic calendar|Hijri]].<ref name=spreadofislam>[http://www.soqte.org/articles/spreadofislam.html Soqte:School Of Orthoepy Quran And Theology::Kashmir]</ref> In various circles, is also called Alamdar-e-Kashmir and Sheikh-ul-Alam and is the patron saint of Kashmiris, highly revered by both Muslims and Hindus.

==Biography==

Shaikh Nur-ud-din was born in a village called Qaimoh (old name Katimusha)[District ''''KULGAM''''],( which is 60 km South east of [[Srinagar]], in 779 A.H. = 1377 A.C, on the day of the [[Eid al-Adha]]. His father's name was Shaikh Salar-ud-din his mother Sadra, was called Sadra Moji or Sadra Deddi. In Kashmir, Moji means 'mother' and Deddi denotes 'elderly.' Both the parents were well known for their piety. It was a period when Kashmir was ruled by the [[sultans]] [[Qutub-ud-Din]], [[Sikandar]], [[Ali Shah]], and [[Zain-ul-Abidin]].

When Nur-ud-din grew up, his stepbrothers began to trouble him. They were rogues, while he was saintly. Once or twice he accompanied them to find work but felt that he could not be happy with them. He was then apprenticed to a couple of traders, one after the other. There, too, he felt disgusted with the ways of the world, and, deciding upon renunciation, retired to caves for meditation at the age of thirty. It is said that he lived for twelve years in the wilderness. Hence, perhaps, kaimuh is given the derivation of kai-wan (or ban, a forest) in rustic belief. The actual cave of contemplation is shown in kaimuh and is about 10 feet deep. In his last days, the saint sustained life on one cup of milk daily. Finally, he reduced himself to water alone, and died at the age of 63, in the reign of sultan Zain-ul-Abidin, in 842 A. H. = 1438 A.C. Shams-ul-Arifin or 'the sun of the pious' is the [[chronogram]] which gives the date of his death. The Sultan accompanied his bier to the grave. The burial prayers were led by a great divine or 'Alim of the age, Makhdum Baba Usman Uchchap Ganai. The tomb of Shaikh Nur-ud-din at [[Charari Sharief]], a small town perched on a dry bare hill, 20 miles south west of Srinagar, is visited by thousands of people to the present day.

During his lifetime, he witnessed a gradual cultural and religious transformation of the people of the valley, from [[Hinduism]] to [[Islam]]. Various historical events helped to shape his mind in such a manner that he produced some works of philosophy, in his own manner of verses and poetry.{{citation needed}}

Sheikh ul-Alam was deeply affected by such events and this is apparent in a majority of his verses.<ref>[http://www.nundreshi.org/ Nund Reshi / Nund Rishi - A great Kashmiri saint]</ref>

The biggest event that occurred in the Sheikh's childhood was the coming of another Muslim preacher, Amir Kabir [[Mir Sayyid Ali Hamadani|Mir Syed Hamadani]], to Kashmir. Shah Hamadan, as he was popularly called, came to Kashmir in September 1372 CE, 1379 CE and the third time in the year 1383 CE.

Shaikh Nur-ud-din- appears to have married '''Zai Ded''' from [[Dadasara, Tral]], Pulwama( her father Akber-u-Din(RA) and two brothers "Kamal-u-din" and "Jamal-u-din" are buried at '''Dadasara Tral''', people of the area visited their shrine for "Dua" to fulfil their needs ) and had two sons and one daughter. On the death of the children, Zai Ded also renounced the world, and became a [[hermit]]. She was buried at Kaimuh on her death.

The simplicity and purity of Shaikh Nur-ud-din's life have deeply impressed the Kashmiri who entertains the highest veneration for the saint. In fact, the Afghan governor, Ata Muhammad Khan, gave, as it were, expression to public sentiment when coins were struck by him in the name of Shaikh Nur-ud-din in 1223-25 A.H. (1808-10 CE). No other saint perhaps in human history has ever had coins struck in his honour.

==Works==
Sheikh-ul-Alam is supposed to have loved Kashmir and its people very intensely and was a revolutionary himself.

Sheikh Nur al-Din Wali is one of the most prominent scholars and Du'ah of Kashmir. He used his poetry as tool to spread the true knowledge of Islam. His poetry is commonly known as ''Shrukhs''. [[Tawhid]], [[Risala]], Ma'ad, human [[lust]] etc. are main subjects of his poetry. He vehemently criticizes the so called Mullas and other pseudo-scholars of Islam.

He was a man of innate foresight and intuitive knowledge. One of his most famous and oft quoted couplets is (Kashmiri:"Ann poshi teli yeli wann poshi") meaning 'Food will last as long as forests last'<ref>[http://www.ikashmir.net/kashmirigems/nundreshi1.html Gems of Kashmiri Literature and Kashmiriyat by P.N. Razdan (Mahanori)]</ref> [[Lal Ded]] the famous [[Kashmir Shaivism|Shaivite]] poetess of Kashmir was his contemporary. She had a great impact on his spiritual growth. He has in one of his poems prayed to God to grant him the same level of spiritual achievement as God had bestowed on Lal Ded.

His teachings were not to the liking of the [[Sayyid]]s who had recently come from central Asia and wanted the sultan to implement a radical version of Islam. For this the sultans had him arrested and imprisoned for two years. Later the popular sultan Budshah (son of Sultan Sikandar Butshikan) who was of a secularist bent of mind had him rehabilitated.

His sayings are preserved in the Nur-nama, commonly available in Kashmir. The Nur-nama also gives the life of the saint. It was written by Baba Nasib-ud-din Ghazi in Persian about two centuries after the death of Shaikh Nur-ud-din.<ref name=spreadofislam/>

Anecdotes of the life of this 'chief of the Rishis' are on the lips of the people throughout the valley.

[[University of Kashmir]] is having a great honour to have Shaikh-ul-Alam Chair in his name.

==Famous sayings==

The saint's attack on hypocrisy is interesting says he:

"By bowing down, thou shalt not become a Rishi; the pounder in the rice- mill did not ever raise up its head."

"By entering a cave, God cannot be attained: the mongoose and the rat seldom come out of their holes".

"By bathing, the mind will not be cleansed: The fish and the otter never ascend the bank."

"If God was just pleased by fasting, the indigent rarely cook food in pots."

Once, on his way to a garden, accompanied by a disciple, he stopped and would not move. On his disciple requesting him to proceed, he made the following reply: "Every minute that I spend there, will be deducted from my stay in heaven".
On another occasion, when invited to a feast, Nur-ud-din went in ragged dress, earlier than the appointed time. The servants, not recognizing him, would not permit him to enter, and he had to go back to take his food at home. When all had sat for the sumptuous dinner, the Shaikh was specially sent for. He came, this time in a flowing chugha (cloak) and was given the seat of honour. But the Shaikh instead of partaking of the food stretched forth his sleeves and put them on to the plates. The people were astonished at the sight and asked him the reason. He replied: "The feast was not really for Nur-ud-Din but for the long sleeves!"<ref name=spreadofislam/>

==Shrine==
The shrine of Sheikh-ul-Alam, in addition to the structure itself, contained its attached [[Khanqah]]s, inns for the pilgrims and other physical features, the vendors of various prayer merchandise, food stalls etc. All combined to make it a place of pilgrimage for Kashmiris of all communities. The shrine contained 600 years old handmade [[Persian Empire|Persian]] and [[Kashmir]] [[carpets]], ancient objects and scrolls, some antique copies of the [[Quran]], extremely precious cut-glass chandeliers etc., all which were reduced to smoke and ashes during a firefight between the Indian army and militants on April 11, 1995.{{cn|date=October 2012}} Both sides blame the other for the fire. Now the shrine has been rebuilt although the adjoining Khanqah is still under construction.

==References==
{{reflist}}

==External links==
* [http://www.ummah.net www.ummah.net]
* [http://www.nundreshi.com www.nundreshi.com]

{{Sufism}}

{{Authority control|VIAF=30370894}}
{{Persondata 
| NAME = Wali, Noor-Ud-Din
| ALTERNATIVE NAMES =Nund Reshi
| SHORT DESCRIPTION = Kashmiri poet
| DATE OF BIRTH = 1377
| PLACE OF BIRTH =Qaimoh Kulgam
| DATE OF DEATH = 1440
| PLACE OF DEATH =charisharief(Budgam)
}}
{{DEFAULTSORT:Wali, Noor-Ud-Din}}
[[Category:Kashmiri people]]
[[Category:Kashmiri poets]]
[[Category:1377 births]]
[[Category:1440 deaths]]
[[Category:Kashmiri people]]
[[Category:Dard people]]
[[Category:Kashmiri people]]

[[hu:Nund-risi]]

Zinkfingernukleasen

2011-08-08T08:42:43Z

14.139.128.11: /* DNA-cleavage domain */

'''Zinc-finger nucleases''' ('''ZFN'''s) are artificial [[restriction enzymes]] generated by fusing a [[zinc finger]] DNA-binding domain to a DNA-cleavage domain. [[Zinc finger]] domains can be engineered to target desired DNA sequences and this enables zinc-finger nucleases to target unique sequences within complex genomes. By taking advantage of endogenous DNA repair machinery, these reagents can be used to precisely alter the genomes of higher organisms.

== DNA-cleavage domain ==

The non-specific cleavage domain from the type IIs [[restriction endonuclease]] [[FokI]] is typically used as the cleavage domain in ZFNs.<ref name="kim1996">{{cite journal| last=Kim| first=YG| coauthors= Cha, J., Chandrasegaran, S.| year=1996| title=Hybrid restriction enzymes: zinc finger fusions to Fok I cleavage domain| journal=Proc Natl Acad Sci USA| volume= 93| issue=3| pages=1156–60 |url=http://www.pnas.org/content/93/3/1156.abstract| doi=10.1073/pnas.93.3.1156| pmid=8577732| pmc=40048}}</ref>
This cleavage domain must dimerize in order to cleave DNA<ref name="bitinaite1998">{{cite journal| last=Bitinaite| first=J.| coauthors= D. A. Wah, Aggarwal, A. K., Schildkraut, I.| year=1998| title=FokI dimerization is required for DNA cleavage| journal=Proc Natl Acad Sci USA| volume= 95| issue=18| pages=10570–5 |url=http://www.pnas.org/cgi/content/full/95/18/10570| doi=10.1073/pnas.95.18.10570| pmid=9724744| pmc=27935}}</ref>
and thus a pair of ZFNs are required to target non-palindromic DNA sites. Standard ZFNs fuse the cleavage domain to the C-terminus of each [[zinc finger]] domain. In order to allow the two cleavage domains to dimerize and cleave DNA, the two individual ZFNs must bind opposite strands of DNA with their C-termini a defined distance apart. The most commonly used linker sequences between the [[zinc finger]] domain and the cleavage domain requires the 5' edge of each binding site to be separated by 5 to 7 bp.<ref>{{cite journal |author=Cathomen T, Joung JK |title=Zinc-finger nucleases: the next generation emerges |journal=Mol. Ther. |volume=16 |issue=7 |pages=1200–7 |year=2008 |month=July |pmid=18545224 |doi=10.1038/mt.2008.114 |url=http://www.nature.com/mt/journal/v16/n7/abs/mt2008114a.html}}
</ref>

Several different [[protein engineering]] techniques have been employed to improve both the activity and specificity of the nuclease domain used in ZFNs. [[Directed evolution]] has been employed to generate a FokI variant with enhanced cleavage activity that the authors dubbed "Sharkey".<ref name=Guo2010>{{Cite doi|10.1016/j.jmb.2010.04.060}}</ref> Structure-based design has also been employed to improve the cleavage specificity of FokI by modifying the dimerization interface so that only the intended heterodimeric species are active.<ref name=Szczepek2007>{{Cite doi|10.1038/nbt1317}}</ref><ref name=Miller2007>{{Cite doi|10.1038/nbt1319}}</ref><ref name=Doyon2010>{{Cite doi|10.1038/nmeth.1539}}</ref><ref name=Ramalingam2010>{{Cite doi|10.1016/j.jmb.2010.10.043}}</ref>

== DNA-binding domain ==

The DNA-binding domains of individual ZFNs typically contain between three and six individual [[zinc finger]] repeats and can each recognize between 9 and 18 basepairs. If the [[zinc finger]] domains are perfectly specific for their intended target site then even a pair of 3-finger ZFNs that recognize a total of 18 basepairs can theoretically target a single locus in a mammalian genome.

Various strategies have been developed to engineer Cys2His2 zinc fingers to bind desired sequences.<ref>
{{cite journal
|author = C.O. Pabo; E.Peisach; R.A. Grant
|year=2001
|title=Design and Selection of Novel Cys2His2 Zinc Finger Proteins
|journal=Annu. Rev. Biochem.
|volume=70
|pages=313–40
|url=http://arjournals.annualreviews.org/doi/abs/10.1146/annurev.biochem.70.1.313?url_ver=Z39.88-2003&rfr_id=ori:rid:crossref.org&rfr_dat=cr_pub%3dncbi.nlm.nih.gov
|doi = 10.1146/annurev.biochem.70.1.313
|pmid = 11395410
}}</ref> These include both "modular assembly" and selection strategies that employ either [[phage display]] or cellular selection systems.

The most straightforward method to generate new zinc-finger arrays is to combine smaller zinc-finger "modules" of known specificity. The most common modular assembly process involves combining three separate zinc fingers that can each recognize a 3 basepair DNA sequence to generate a 3-finger array that can recognize a 9 basepair target site. Other procedures can utilize either 1-finger or 2-finger modules to generate zinc-finger arrays with six or more individual zinc fingers. The main drawback with this procedure is the specificities of individual zinc fingers can overlap and can depend on the context of the surrounding zinc fingers and DNA. Without methods to account for this "context dependence", the standard modular assembly procedure often fails unless it is used to recognize sequences of the form (GNN)N.<ref>{{cite journal |author=Ramirez CL, Foley JE, Wright DA, ''et al.'' |title=Unexpected failure rates for modular assembly of engineered zinc fingers |journal=Nat. Methods |volume=5 |issue=5 |pages=374–5 |year=2008 |month=May |pmid=18446154 |doi=10.1038/nmeth0508-374 }}</ref>

Numerous selection methods have been used to generate zinc-finger arrays capable of targeting desired sequences. Initial selection efforts utilized [[phage display]] to select proteins that bound a given DNA target from a large pool of partially randomized zinc-finger arrays. More recent efforts have utilized yeast one-hybrid systems, bacterial one-hybrid and two-hybrid systems, and mammalian cells. A promising new method to select novel zinc-finger arrays utilizes a bacterial two-hybrid system and has been dubbed "OPEN" by its creators.<ref>
{{cite journal
|author =Maeder ML, ''et al.'
|year=2008
|title=Rapid "Open-Source" Engineering of Customized Zinc-Finger Nucleases for Highly Efficient Gene Modification
|journal=Mol. Cell
|volume=31
|pages=294–301
|pmid=18657511 |pmc=2535758 |doi=10.1016/j.molcel.2008.06.016 |url=http://linkinghub.elsevier.com/retrieve/pii/S1097-2765(08)00461-9
|month= September
|issue =2
}}</ref> This system combines pre-selected pools of individual zinc fingers that were each selected to bind a given triplet and then utilizes a second round of selection to obtain 3-finger arrays capable of binding a desired 9-bp sequence. This system was developed by the Zinc-Finger Consortium as an alternative to commercial sources of engineered zinc-finger arrays.

(see: [[Zinc finger chimera]] for more info on zinc finger selection techniques)

== Applications ==
[[Zinc finger nucleases]] have become useful reagents for manipulating the genomes of many plants and animals including [[arabidopsis]]<ref name=Zhang2010>{{Cite doi|10.1073/pnas.0914991107}}</ref><ref name=Osakabe2010>{{Cite doi|10.1073/pnas.1000234107}}</ref>, [[tobacco]]<ref name=Cai2008>{{Cite doi|10.1007/s11103-008-9449-7}}</ref><ref name=Townsend2009>{{Cite doi|10.1038/nature07845}}</ref>, [[soybean]],<ref name=Curtin2011>{{Cite doi|10.1104/pp.111.172981}}</ref> [[maize|corn]],<ref>
{{cite journal
|author=Shukla VK, Doyon Y, Miller JC, ''et al.''
|title=Precise genome modification in the crop species Zea mays using zinc-finger nucleases
|journal=Nature
|volume=459
|issue=7245
|pages=437–41
|year=2009
|month=May
|pmid=19404259
|doi=10.1038/nature07992
|unused_data=DUPLICATE DATA: doi=10.1038/nature07992
|bibcode=2009Natur.459..437S
}}</ref> ''[[Drosophila melanogaster]]'',<ref name=Bibikoca2003>{{Cite doi|10.1126/science.1079512}}</ref> ''[[Caenorhabditis elegans| C. elegans]]'',<ref name=Wood2011>{{Cite doi|10.1126/science.1207773}}</ref> [[Sea urchin]],<ref>
{{cite journal
|author=Ochiai H, Fujita K, Suzuki K, ''et al.''
|title=Targeted mutagenesis in the sea urchin embryo using zinc-finger nucleases
|journal=Genes to Cells
|volume=15
|issue=8
|pages=875–85,
|year=2010
|month=Aug
|pmid= 20604805
|doi=10.1111/j.1365-2443.2010.01425.x
|unused_data=DUPLICATE DATA: doi=10.1111/j.1365-2443.2010.01425.x
}}</ref>
[[silkworm]],<ref name=Takasua2010>{{Cite doi|10.1016/j.ibmb.2010.07.012}}</ref>
[[zebrafish]],<ref>
{{cite journal
|author = S.C. Ekker
|year=2008
|title=Zinc finger-based knockout punches for zebrafish genes
|journal=Zebrafish
|volume=5
|pages=1121–3
|url=http://www.liebertonline.com/doi/abs/10.1089/zeb.2008.9988
|doi = 10.1089/zeb.2008.9988
|pmid = 18554175
|issue = 2
|pmc = 2849655
}}</ref>, [[frog]]s,<ref name=Young2011>{{Cite doi|10.1073/pnas.1102030108}}</ref> [[mice]],<ref name=Goldberg2010>{{Cite doi|10.1016/j.cell.2010.01.003}}</ref> [[rat]]s,<ref name=Geurts2009>{{Cite doi|10.1126/science.1172447}}</ref> [[rabbit]]s,<ref name=Flisikowska2011>{{Cite doi|10.1371/journal.pone.0021045}}</ref> [[pig]]s,<ref name=Hauschild2011>{{Cite doi|10.1073/pnas.1106422108}}</ref> and
various types of mammalian cells.<ref>
{{cite journal
|author = D. Carroll
|year=2008
|title=Progress and prospects: Zinc-finger nucleases as gene therapy agents
|journal=Gene Therapy
|volume=15
|pages=1463–1468
|url=http://www.nature.com/gt/journal/v15/n22/abs/gt2008145a.html
|doi = 10.1038/gt.2008.145
|pmid = 18784746
|issue = 22
|pmc = 2747807
}}</ref> [[Zinc finger nucleases]] have also been used in a mouse model of [[haemophilia]]<ref name=Li2011>{{Cite doi|10.1038/nature10177}}</ref> and an ongoing clinical trial is evaluating [[Zinc finger nucleases]] that disrupt the CCR5 gene in CD4+ human T-cells as a potential treatment for [[HIV/AIDS]]. ZFNs are also used for the creation of a new generation of genetic disease models called [[isogenic human disease models]].

=== Disabling an allele ===

ZFNs can be used to disable dominant mutations in heterozygous individuals by producing double strand breaks (DSBs) in the DNA (see [[Genetic recombination]]) in the mutant allele which will, in the absence of a homologous template, be repaired by [[non-homologous end-joining]] (NHEJ). NHEJ repairs DSBs by joining the two ends together and usually produces no mutations, provided that the cut is clean and uncomplicated. In some instances however, the repair will be imperfect, resulting in deletion or insertion of base-pairs, producing [[frame-shift]] and preventing the production of the harmful protein.<ref name="durai"/> Multiple pairs of ZFNs can also be used to completely remove entire large segments of genomic sequence.<ref>
{{cite journal
|author=Lee HJ, Kim E, Kim JS
|title=Targeted chromosomal deletions in human cells using zinc finger nucleases
|journal=Genome Res.
|volume=20
|issue=1
|pages=81–9
|year=2009
|month=December
|pmid=19952142
|doi=10.1101/gr.099747.109
|url=http://www.genome.org/cgi/pmidlookup?view=long&pmid=19952142
|pmc=2798833
}}</ref>

ZFNs have also been used modify disease-causing alleles in triplet repeat disorders. Expanded CAG/CTG repeat tracts are the genetic basis for more than a dozen inherited neurological disorders including Huntington’s disease, myotonic dystrophy, and several spinocerebellar ataxias. It has been demonstrated in human cells that ZFNs can direct double-strand breaks (DSBs) to CAG repeats and shrink the repeat from long pathological lengths to short, less toxic lengths.<ref>{{cite journal|last=Mittelman|first=D|coauthors=Moye, C, Morton, J, Sykoudis, K, Lin, Y, Carroll, D, Wilson, JH|title=Zinc-finger directed double-strand breaks within CAG repeat tracts promote repeat instability in human cells.|journal=Proceedings of the National Academy of Sciences of the United States of America|date=2009-06-16|volume=106|issue=24|pages=9607–12|pmid=19482946|doi=10.1073/pnas.0902420106|pmc=2701052}}</ref>

Recently, a group of researchers have successfully applied the ZFN technology to genetically modify the gol pigment gene and the ntl gene in zebrafish embryo. Specific zinc-finger motifs were engineered to recognize distinct DNA sequences. The ZFN-encoding mRNA was injected into one-cell embryos and a high percentage of animals carried the desired mutations and phenotypes. Their research work demonstrated that ZFNs can specifically and efficiently create heritable mutant alleles at loci of interest in the germ line, and ZFN-induced alleles can be propagated in subsequent generations.

Similar research of using ZFNs to create specific mutations in zebrafish embryo has also been carried out by other research groups. The kdr gene in zebra fish encodes for the vascular endothelial growth factor-2 receptor. Mutagenic lesions at this target site was induced using ZFN technique by a group of researchers in US. They suggested that the ZFN technique allows straightforward generation of a targeted allelic series of mutants; it does not rely on the existence of species-specific embryonic stem cell lines and is applicable to other vertebrates, especially those whose embryos are easily available; finally, it is also feasible to achieve targeted knock-ins in zebrafish, therefore it is possible to create human disease models that are heretofore inaccessible.

=== Allele editing ===

ZFNs are also used to rewrite the sequence of an allele by invoking the [[homologous recombination]] (HR) machinery to repair the DSB using the supplied DNA fragment as a template. The HR machinery searches for homology between the damaged chromosome and the extra-chromosomal fragment and copies the sequence of the fragment between the two broken ends of the chromosome, regardless of whether the fragment contains the original sequence. If the subject is homozygous for the target allele, the efficiency of the technique is reduced since the undamaged copy of the allele may be used as a template for repair instead of the supplied fragment.

===Gene therapy===
The success of gene therapy depends on the efficient insertion of therapeutic [[gene]]s at the appropriate [[chromosome|chromosomal]] target sites within the human [[genome]], without causing cell injury, [[oncogenesis|oncogenic]] mutations or an [[immune response]]. The construction of [[plasmid]] [[Plasmid#Vectors|vector]]s is simple and straightforward. Custom-designed ZFNs that combine the non-specific cleavage domain (N) of ''Fok''I endonuclease with zinc-finger proteins (ZFPs) offer a general way to deliver a site-specific DSB to the genome, and stimulate local homologous recombination by several orders of magnitude. This makes targeted gene correction or genome editing a viable option in human cells. Since ZFN-encoded plasmids could be used to transiently express ZFNs to target a DSB to a specific gene locus in human cells, they offer an excellent way for targeted delivery of the therapeutic genes to a pre-selected chromosomal site. The ZFN-encoded plasmid-based approach has the potential to circumvent all the problems associated with the viral delivery of therapeutic genes.<ref name= Kandavelou>{{cite book |author= Kandavelou K; Chandrasegaran S|year=2008|chapter=Plasmids for Gene Therapy|title=Plasmids: Current Research and Future Trends|publisher=Caister Academic Press|isbn= 978-1-904455-35-6}}</ref> The first therapeutic applications of ZFNs are likely to involve ''ex vivo'' therapy using a patients own stem cells. After editing the stem cell genome, the cells could be expanded in culture and reinserted into the patient to produce differentiated cells with corrected functions. The initial targets will likely include the causes of monogenic diseases such as the IL2Rγ gene and the b-globin gene for gene correction and CCR5 gene for mutagenesis and disablement.<ref name="durai"/>

== Potential Problems ==
=== Off-target Cleavage ===

If the [[zinc finger]] domains are not specific enough for their target site or they do not target a unique site within the genome of interest, off-target cleavage may occur. Such off-target cleavage may lead to the production of enough double-strand breaks to overwhelm the repair machinery and consequently yield chromosomal rearrangements and/or cell death. Off-target cleavage events may also promote random integration of donor DNA.<ref name="durai">{{cite journal |author=Durai S, Mani M, Kandavelou K, Wu J, Porteus MH, Chandrasegaran S |title=Zinc finger nucleases: custom-designed molecular scissors for genome engineering of plant and mammalian cells |journal=Nucleic Acids Res. |volume=33 |issue=18 |pages=5978–90 |year=2005 |pmid=16251401 |doi=10.1093/nar/gki912 |url=http://nar.oxfordjournals.org/cgi/pmidlookup?view=long&pmid=16251401 |pmc=1270952}}</ref>
Despite advances in engineering both more specific [[zinc finger]] domains and modified [[FokI]] cleavage domains
,<ref>
{{cite journal
|author = T. Cathomen; J.K. Joung
|year=2008
|title=Zinc-finger Nucleases: The Next Generation Emerges
|journal=Molecular Therapy
|volume=16
|pages=1200–1207
|url=http://www.nature.com/mt/journal/v16/n7/abs/mt2008114a.html
|doi = 10.1038/mt.2008.114
|pmid = 18545224
|issue = 7
}}
</ref>
ZFN off-target activity is still a significant concern.<ref>Zinc-finger Nuclease-induced Gene Repair With Oligodeoxynucleotides: Wanted and Unwanted Target Locus Modifications Molecular Therapy vol. 18 no.4, 743-753 (2010)</ref> Two separate methods have been demonstrated to decrease off-target cleavage for 3-finger ZFNs that target two adjacent 9-basepair sites.
<ref>
{{cite journal |author=Gupta A, Meng X, Zhu LJ, Lawson ND, Wolfe SA |title=Zinc finger protein-dependent and -independent contributions to the in vivo off-target activity of zinc finger nucleases |journal=Nucleic Acids Res |volume= 39|issue= 1|pages= 381–392|year=2010 |month=September |pmid=20843781 |doi=10.1093/nar/gkq787 |url= |pmc=3017618}}.</ref>
Other groups use ZFNs with 4, 5 or 6 zinc fingers that target longer and presumably rarer sites and such ZFNs may tend to yield less off-target activity, but this has not been conclusively demonstrated.

=== Immunogenicity ===

{{details|Adaptive immune response}}

As with many foreign proteins inserted into the human body, there is a risk of an immunological response against the therapeutic agent and the cells in which it is active. Since the protein will only need to be expressed transiently however, the time over which a response may develop is short.<ref name="durai"/>

== Prospects ==

The ability to precisely manipulate the genomes of plants, animals and insects has numerous applications in basic research, agriculture, and human therapeutics. Using ZFNs to modify endogenous genes has traditionally been a difficult task due mainly to the challenge of generating [[zinc finger]] domains that target the desired sequence with sufficient specificity. Improved methods of engineering [[zinc finger]] domains and the availability of ZFNs from a commercial supplier now put this technology in the hands of increasing numbers of researchers. Several groups are also developing other types of engineered nucleases including engineered homing endonucleases
<ref>{{cite journal |author=Grizot S, Smith J, Daboussi F, ''et al.'' |title=Efficient targeting of a SCID gene by an engineered single-chain homing endonuclease |journal=Nucleic Acids Res. |volume=37 |issue=16 |pages=5405–19 |year=2009 |month=September |pmid=19584299 |pmc=2760784 |doi=10.1093/nar/gkp548 |url=}}</ref>
<ref>{{cite journal |author=Gao H, Smith J, Yang M, ''et al.'' |title=Heritable targeted mutagenesis in maize using a designed endonuclease |journal=Plant J. |volume=61 |issue=1 |pages=176–87 |year=2010 |month=January |pmid=19811621 |doi=10.1111/j.1365-313X.2009.04041.x |url=}}</ref>
and nucleases based on engineered [[TAL effector]]s.
<ref>{{cite journal |author=Christian M, Cermak T, Doyle EL, ''et al.'' |title=TAL Effector Nucleases Create Targeted DNA Double-strand Breaks |journal=Genetics |volume= 186|issue= 2|pages= 757–61|year=2010 |month=July |pmid=20660643 |pmc=2942870 |doi=10.1534/genetics.110.120717 |url=}}</ref>
<ref>{{cite journal |author=Li T, Huang S, Jiang WZ, ''et al.'' |title=TAL nucleases (TALNs): hybrid proteins composed of TAL effectors and FokI DNA-cleavage domain |journal=Nucleic Acids Res |volume= 39|issue= 1|pages= 359–372|year=2010 |month=August |pmid=20699274 |doi=10.1093/nar/gkq704 |url= |pmc=3017587}}</ref>
TAL effector nucleases (TALENs) are particularly interesting because TAL effectors appear to be very simple to engineer
<ref>
{{cite journal |author=Moscou MJ, Bogdanove AJ |title=A simple cipher governs DNA recognition by TAL effectors |journal=Science |volume=326 |issue=5959 |pages=1501 |year=2009 |month=December |pmid=19933106 |doi=10.1126/science.1178817 |url= |bibcode=2009Sci...326.1501M}}</ref>
<ref>{{cite journal |author=Boch J, Scholze H, Schornack S, ''et al.'' |title=Breaking the code of DNA binding specificity of TAL-type III effectors |journal=Science |volume=326 |issue=5959 |pages=1509–12 |year=2009 |month=December |pmid=19933107 |doi=10.1126/science.1178811 |url=}}</ref>
and TALENs can be used to target endogenous loci in human cells.<ref name=Miller2010>{{Cite doi|10.1038/nbt.1755 }}</ref> But to date no one has reported the isolation of clonal cell lines or transgenic organisms using such reagents.

== See also ==
*[[Zinc finger]]
*[[Gene targeting]]
*[[Zinc finger protein]]
*[[Zinc finger chimera]]
*[[Protein engineering]]
*[[Genome engineering]]

== References ==
{{reflist}}

==Further reading==
*{{cite journal |author=Mandell JG, Barbas CF |title=Zinc Finger Tools: custom DNA-binding domains for transcription factors and nucleases |journal=Nucleic Acids Res. |volume=34 |issue=Web Server issue |pages=W516–23 |year=2006 |month=July |pmid=16845061 |pmc=1538883 |doi=10.1093/nar/gkl209 |url=http://nar.oxfordjournals.org/cgi/pmidlookup?view=long&pmid=16845061}}
*{{cite journal |author=Porteus MH, Carroll D |title=Gene targeting using zinc finger nucleases |journal=Nat. Biotechnol. |volume=23 |issue=8 |pages=967–73 |year=2005 |month=August |pmid=16082368 |doi=10.1038/nbt1125 }}
*{{cite journal |author=Doyon Y, McCammon JM, Miller JC, ''et al.'' |title=Heritable targeted gene disruption in zebrafish using designed zinc-finger nucleases |journal=Nat. Biotechnol. |volume=26 |issue=6 |pages=702–8 |year=2008 |month=June |pmid=18500334 |pmc=2674762 |doi=10.1038/nbt1409 }}
*{{cite journal |author=Meng X, Noyes MB, Zhu LJ, Lawson ND, Wolfe SA |title=Targeted gene inactivation in zebrafish using engineered zinc-finger nucleases |journal=Nat. Biotechnol. |volume=26 |issue=6 |pages=695–701 |year=2008 |month=June |pmid=18500337 |pmc=2502069 |doi=10.1038/nbt1398 }}

== External links ==
* [http://www.scripps.edu/mb/barbas/zfdesign/zfdesignhome.php Zinc finger selector]
* [http://www.zincfingers.org Zinc Finger Consortium website]
* [http://www.addgene.org/zfc Zinc Finger Consortium materials from Addgene]
* [http://www.compozrzfn.com/ A commercial supplier of ZFNs]

[[Category:Engineered proteins]]
[[Category:Zinc proteins]]

[[fr:Nucléase à doigt de zinc]]
[[ja:ジンクフィンガーヌクレアーゼ]]
[[zh:锌指核酸酶]]