RecycleBank : Recycle all the way to the bank

RecycleBank uses technology to reward recyclers through credit based on efforts to recycle.  The company creates incentives for recycling and tuning the business of recycling materials into a profitable business.  The company uses RFID technology to track recycling efforts and rewards users with tie ups with companies offering redeemable coupons on purchases such as starbucks, staples, bed bath and beyond, and whole foods. 

The company got its start from the idea of finding a way to encourage individuals to recycle.  Patrick Fitzgerald was studying at the time at Fordham and contemplated a solution in response to mayor Bloomberg debating to close down recycling program.  The problem was that people were not recycling enough and the city had to cover the expense to keep recycling program going.  The solution would to pay consumer directly to increase levels of recycling and tie in corporate social responsibility and awareness programs into the rewards program. 

Pat Fitzgerald teamed up with high school buddy Ron Gogen , a student at Colombia Business School,  started out with 100,000 seed  from Colombia to launch RecycleBank in Philadelphia.  RecycleBank would need to convince municipalities that they would save money by using their program increase recycling materials and decrease cost associated in waste management and landfill costs. 

The company business model is to charge municipalities and waste companies a fee of roughly $25 per user and says the cost saving would be covered by reduced landfill and incinerator cost per user.  Also the company works with recycling plants with share of revenues generated from the RecycleBank program based on additional amount of recycle waste. Residents participating in RecycleBank can check their RecycleBank balance online and cash in their coupons, maximum of $25 a month and $400 a year at participating corporate partners in the program.

Putting the pieces together

RecycleBank work hard to put the technologies together to track and measure the recycling program and reward participants accordingly.   The worked with Cascade Engineering into  provided 35- and 64-gallon bins embedded with RFID tags.  The RFID technology allows the bins to be scanned and weighed and link to household. The LTS Scale Corporation configured scales and a tipping mechanism for the containers for recycle bins can be accurately weighed and easily emptied into trucks.  The information is stored on the onboard computers into databank for reporting.

RecycleBank convinced Philadephia officials to run a pilot program in two neighborhoods. The program is proving successful based on the level of participation 90% and average weight materials is 25 lbs. The waste management company Casella waste was impressed and plans to implement the program in other areas in which the company operates.

The RecycleBank intends to have the system up in 250,000 homes by the end of the year.  The numbers would mean that the company will generate around 7M in the year. The company intends to take the program on national level.  Recently, the company raised 30M from KPCB venture fund and will definitely help RecycleBank expand the business beyond the regional level.