Despite its financial turnaround, GoStudent still faces challenges. Some tutors have complained about receiving less than 50% of parents' fees while undertaking almost all of the preparation and administrative work. The company is also dealing with complaints from parents about being pushed into multi-year commitments and difficulties in cancelling contracts. To address these issues, GoStudent is leveraging AI to improve efficiency and is working on building its own tools, such as GoChat and GoClass, to enhance child safety and teaching quality.
Key takeaways:
- GoStudent, an online tutoring marketplace valued at $3.2 billion, has become profitable, according to CEO Felix Ohswald.
- The company experienced rapid growth from 2019 to 2022, but also faced significant financial losses, leading to several rounds of layoffs and cost cuts.
- GoStudent has shifted its focus from rapid expansion to more sustainable growth, reducing its burn rate by 70% in 2023 and refocusing on the European market.
- The company's priorities for 2024 include remaining cash-flow positive, putting students first, and leveraging AI to scale its business in a capital-efficient way.