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NYC trash
A New Yorker walking past a pile of trash (Charly Triballeau / Getty Images)
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New York’s $1.6 million trash can revolution

New York City paid McKinsey to help it revamp its sanitation network

Jack Raines

One of my favorite tropes is that organizations pay management consultants, such as McKinsey & Company, millions of dollars to create slide decks with obvious solutions, such as “reduce expenses and increase revenue.”

One of my favorite things about living in New York is that, despite being the largest city-wide economy in the world, New York’s sidewalks are covered with piles of trash bags every evening. It was only fitting, then, that in 2022, New York City’s Department of Sanitation (DSNY) paid McKinsey  $1.6 million to conduct a 20-week waste containerization needs study, and earlier this week, New York City Mayor Eric Adams unveiled the city’s first-ever official NYC Bin.

The DSNY also put forth a proposed rule requiring that all buildings with one to nine residential units and all special use buildings that receive DSNY collection (e.g. city agency buildings, houses of worship, and professional offices located within residential buildings) put their trash in containers, effective November 12, 2024. This will, according to Mayor Adams, “containerize more than 70% of the city’s trash to protect our most valuable and limited resource — our public space.”

A few things to note here: first, plenty of NYC residents have already been using trash cans, and, assuming their current lids have securing latches, they’ll have until 2026 to switch to the NYC-branded containers. Second, this is part of a larger investment, which includes the development of new automatic side-loading trucks designed to service the new trash cans. For what it’s worth, many of New York’s streets are notoriously narrow, and curb space in busy areas is nonexistent, making the trash servicing process more difficult than in other, less densely populated areas.

If you’re curious, The DSNY published a 2023 Containerization Report, in which it cited McKinsey’s work, and the report is quite interesting. A few stats:

  • New Yorkers leave 44 million pounds of trash on curbs each day (!!!)

  • Choosing whether or not to use wheeled shared containers (the really big metal containers that trucks can pick up, not the smaller trash bins referenced above) would have a massive impact on the city’s entire sanitation system, including which trucks to invest in.

  • McKinsey studied the sanitation systems of dozens of cities across the US, Latin America, Europe, Asia, and Australia when creating their report for New York.

  • Some of the slides, such as the one below, are hysterical:

New York City Sanitation Deck Slide
A slide from the NYC Department of Sanitation's 2023 deck.

While the “consultants get paid millions for obvious recommendations” is a fun trope, $1.6 million feels more than reasonable if it helps clean up our rat problem.

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Delta to increase bag fees by $10 on domestic flights this week, following JetBlue and United, as jet fuel surges

As the price of jet fuel surges amid the war in Iran, Delta Air Lines on Tuesday announced that it will hike its checked bag fees by $10 beginning this week.

Checking one bag on a domestic Delta flight will now cost $45, up from $35. A second bag will cost $55, up from $45, and a third will cost $200, up from $150. In a statement to Sherwood News, Delta issued the following announcement:

“For tickets purchased on or after April 8, Delta will increase fees for first and second checked bags by $10 and for a third checked bag by $50 on domestic and select short-haul international routes. These updates are part of Delta’s ongoing review of pricing across its business and reflect the impact of evolving global conditions and industry dynamics. Delta SkyMiles Medallion Members; customers traveling in First Class, Delta Premium Select and Delta One; active-duty military customers; and those with eligible co-branded Delta SkyMiles American Express Cards will continue to receive their allotment of complimentary checked bags.”

The move follows similar hikes by JetBlue and United Airlines last week. More are likely to come: when one major airline adjusts its fees, others tend to follow quickly behind. Delta last raised its bag fees in 2024, along with other major airlines.

Jet fuel prices were $4.69 a gallon on Monday, per the Argus US Jet Fuel Index. That’s up from the low $2 range for much of January.

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Paramount reportedly receives $24 billion from Gulf funds to back its Warner Bros. takeover

Three Middle East sovereign wealth funds have agreed to back Paramount’s takeover of Warner Bros. Discovery to the tune of roughly $24 billion, according to Wall Street Journal reporting.

The company’s triumph over Netflix in the bidding war came thanks in part to financial backing from Oracle cofounder Larry Ellison, billionaire father of Paramount CEO David Ellison.

Saudi Arabia’s PIF, which last year led the $55 billion deal to take Electronic Arts private, will provide about $10 billion in the deal. The Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. is also involved.

According to the WSJ, the funds will not receive voting rights in the combined Paramount-Warner company. Those working on the deal don’t expect the Gulf funds’ involvement to spark any additional regulatory reviews.

The company’s triumph over Netflix in the bidding war came thanks in part to financial backing from Oracle cofounder Larry Ellison, billionaire father of Paramount CEO David Ellison.

Saudi Arabia’s PIF, which last year led the $55 billion deal to take Electronic Arts private, will provide about $10 billion in the deal. The Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. is also involved.

According to the WSJ, the funds will not receive voting rights in the combined Paramount-Warner company. Those working on the deal don’t expect the Gulf funds’ involvement to spark any additional regulatory reviews.

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