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NYC trash
A New Yorker walking past a pile of trash (Charly Triballeau / Getty Images)
Weird Money

New York’s $1.6 million trash can revolution

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

Jack Raines
7/11/24 2:08PM

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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Amazon is testing adding GM electric vans to its EV delivery fleet dominated by Rivian

Rivian may have some competition in its electric delivery van division: Bloomberg reports that Amazon is testing a small number of GM’s BrightDrop vans for its fleet.

According to Amazon, the test currently only includes a dozen of the vehicles. Amazon’s fleet also contains EVs from Ford, Stellantis, and Mercedes-Benz.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

business

Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

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