What happens when the 800 Pound Gorilla eats a Zoo Keeper?
Waste Management Acquires Oakleaf Waste
Seems like Waste Management has taken the approach of “if you can’t beat ’em, eat ’em”, as their recent acquisition of Oakleaf (its largest rival and marketplace obstacle in the chain arena) furthers its quest for industry domination. Oakleaf’s business model, like other management co’s, was to police the industry, actively pursue and promote competitive pricing, and find alternatives to land-filling waste. The reason management co’s are in existence is for fixing what the large waste hauling co’s have been doing (and not doing). A management co’s model is polar opposite of Waste Management’s model of increasing costs, eliminating competition, and increasing landfill volume. What are Oakleaf’s clients going to do now that the fox owns the hen house?
Waste Management’s vertical business integration positions them in opposition to a truly “managed and diverse trash program”. Increasing profitability, the core value of every for-profit business, for Waste Management will result in: 1. Hauling Fees–hauling the trash in its own trucks (not sub-contracting), 2. Landfill Fees–increasing the amount of trash hauled to the landfills it owns (not diverting), and 3. Increasing Fees at the locations they service–increasing container sizes and frequency (not optimizing). This 1-2-3 punch will have a large negative impact on the marketplace and industry affecting everyone from haulers to corporations.
National Waste Associates