Dive Brief: Recycling contracts with some form of revenue-sharing or fee-based model are here to stay, according to three executives from Waste Management, Republic Services and Casella Waste Systems during a Aug. 30 session at the Resource Recycling Conference.
The panel also agreed that franchise contracts may be one of the best ways to achieve high recycling targets set by cities.
“I think there’s a lot of benefits, for a city, to move toward a franchise system,” said Susan Moulton, public sector sales director for Waste Management, noting the potential for cities to require cleaner vehicles and earn revenue from franchise fees.
The CEOs of all three companies represented have been promoting this revenue sharing or fee-based approach in recent months as a result.
Longer term franchise contracts are part of this equation, but the concept is still controversial in some markets.
Whether customers are better served by franchise contracts or an open market system depends on whom you ask.
Keller said Los Angeles “Would never be able to achieve the things that they want to achieve” without franchise contracts.