Dive Brief:
- Trash Taxi, a hauler in Lincoln, NE, says its business is being damaged through unscrupulous tactics by other waste firms in the area.
- According to Trash Taxi principal Dana Houser, competitors are distributing flyers to customers saying the newcomer is providing inferior services. According to the company, some competitors have allegedly refused to sign for certified letters from households switching service providers to Trash Taxi.
- Three recycling facilities have refused to accept recyclables from Trash Taxi. The recyclers maintain they are looking out for the best interests of customers, citing prices half the amount of other haulers that lead them to believe the company won’t be in business for long.
Dive Insight:
In the past, Lincoln haulers stayed in specific neighborhoods based on an “unwritten agreement.” This meant that companies have not previously competed directly for residential pick-ups.
The owner of Trash Taxi, Dana Houser, said that business model was not profitable, prompting the company to expand its business to areas serviced by competitors. The assistant director of Lincoln’s Public Works and Utilities Department said the city cannot step in and that “this is a free market system.”