VIPKid is already refining its techniques by recording lessons on video and crunching data on which strategies work best. They've found students learn more effectively if they can pick teachers that suit their aptitudes and study examples that capture their interest. "It's just now that we are able to see real gains in efficiency," says Hutter, who also put money into VIPKid. "Depending on the current choices for learning, you could see 5x or 10x improvements in the time spent per unit of education."
A looming challenge for Mi is that her business has few barriers to entry and others see the opportunity too. 51Talk began offering a similar service for Chinese kids over the summer and is recruiting teachers in the U.S. Its customers can now choose between a premium service with American instructors or regular classes with Filipinos at about $5 an hour. "The adoption rate for online education, especially online English education, has been tremendous," says Jimmy Lai, 51Talk's chief financial officer. "So we believe even with three major players in the marketplace we're going to continue seeing strong growth."
Back in Beijing, the sun is beginning to set in the hutong. It's the end of the day for many people, but Mi won't finish any time soon. "I usually work until about 2 a.m., sometimes 4 but usually about 2," she says. "We have so much to do."
This article was provided by Bloomberg News.