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Originally Posted by Ironhorse
*Citation needed.
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It's been studied a lot over the decades, but I'll just copy and paste my post from the last time this got brought up
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What normally happens is it's cheaper the first few years to make everyone happy. Then companies start increasing their prices (if allowed in the contract, usually a set % each year if at all) and lowering their service levels the absolute most they can get away with (Which is a lot). Then before you know it you're paying more for less, and have no control over addressing it without very expensive lawsuits. Manage to get out of the contract? Companies already know what the other guy was getting paid, they aren't giving you an honest bid. Plus what company has several hundred trucks just sitting around hoping a city calls them? Rinse and repeat. By then you can't go back because you sold off all your own equipment and can't do it yourself without the same massive start up cost that prevented more companies even bidding in the first place. Simply isn't going to happen within a city budget.
Governments like the idea because it gives them a very simple flat rate fee, one less massive headache to worry about, in theory. It makes sense for small cities and towns, but not big cities.
Edit: Plus, privitization usually means the bulk of the money leaves the province
It's just a pilot at least, maybe the whole thing flops and we go back to how it was. Trouble is, companies aren't dumb, they're on their best behaviour during a pilot
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Here's one study, I'll just copy and paste part of the conclusion
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The idea of private waste collection may sound appealing to some. But in
reality, it has proven to have limited success and, given the amount of monitoring associated with trying to make private waste collection work for the
public good, it may be more of a headache than it’s worth. In general, local governments are primarily seeking to reduce their costs by contracting
out service delivery. In residential waste collection specifically, these sav-
ings are far from guaranteed. Decades of empirical research from jurisdictions across North America and Europe show no clear connection between
private waste collection and cost reductions. Moreover, cost savings appear
to be increasingly less likely.
The two main reasons why private waste collection fails to reduce municipal costs: (1) a widespread lack of competition, and (2) large and often
unaccounted for transaction costs. Research shows, for instance, a broad
trend in the waste collection market toward private oligopolies, where markets are heavily dominated by just a few firms.
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https://policyalternatives.ca/sites/...;s%20Worth.pdf
What I personally like is the city offers limited service (Like every other week) to save a bit of $, then if you personally need more garbage collection then that you can pay for another private service to come on those off weeks. I know that exists in Edmonton and it's like an extra $25 a month.