Why Invest in Kollect
How Kollect Works
Kollect operates an online marketplace that connects customers (Business and domestic) who need to dispose of waste with waste companies who collect waste, using our technology platform, creating value for both sides of the transaction. We are similar to uber but instead of moving people we move waste.
So for a collection customer in Ireland/Uk they can find our platform easily through search, get a price and book in a job at a date and time that suits them, paying online. They only need to go to one platform for all their waste needs. Once the customer chooses the waste need we then subcontract fulfillment to our waste company partners. For the waste partner our platform brings more revenue/customers. We have lots of competitors, but no direct competitors who do what we do. We have created our own niche in the waste industry. We want to be like “uber” or “delivery hero”. When people have waste they think “kollect”.
Within waste drop-off, the Company offers a large, smart compactor bin (the “BIGbin”) installed at different convenient locations throughout Ireland. The BIGbin allows for disposal of domestic waste and serves as an alternative to consumers locked in long-term contracts for collection. Whilst BIGbin is owned by Kollect, it is managed independently from the Platform.
Waste collection – The Platform
All services facilitated within the waste collection segment are available through the Platform, which essentially is an online booking engine for waste collection services. The Company connects consumers with waste contractors who provide bin collection, container (skip) hire and junk removal.
The success of the Company’s business model within waste collection depends on its ability to efficiently attract and retain waste contractors and consumers on the Platform. As the network of consumers and waste contractors on the Platform increases, liquidity network effects are expected to be achieved meaning that scaling the network benefits both consumers and waste contractors using the Platform. The Company anticipates an increase in the supply of services leads to faster service provision at lower cost, since more waste contractors would compete for the same job on the Platform.
Simultaneously, an increase in demand for services generates earnings potential and productivity improvements for waste contractors. This is especially important for waste contractors in order to overcome one of the industry’s main structural barriers to entry – economies of scale.
Economies of scale exist because the marginal cost of collection falls as the quantity of waste collected increases. There is evidence that both variable and fixed costs fall due to these economies of scale. In terms of variable costs, waste operators pay fees to dispose of waste and these fees can be lowered per tonne for operators that have more scale. In relation to fixed costs, for example, the cost of purchasing a truck, the more waste collected the lower the fixed cost per tonne collected.
Kollect identifies and partners with licensed waste contractors in each market to service customers using the Platform. When Kollect partners with a waste company (having agreed prices for the service), it adds the partner’s route to the Platform. Through technology, Kollect knows where each waste contractor’s are located.
When a customer places an order via the Platform, it is dispatched to the network and accepted by the nearest and best suited waste contractor with spare capacity. The Platform connects the customer with the contractor undertaking the job. Kollect tracks and monitors the process and updates the customer accordingly. It takes less than 60 seconds to book a waste collection service and the Platform offers round-the-clock availability.
The BIGbin is a large, fully-sealed compactor bin, accessible seven days a week, specifically designed for installation in convenient locations such as garage forecourts, supermarket car parks, civic amenity sites and in apartment complexes. BIGbins are available seven days a week.
The BIGbin is a waste drop-off solution intended for domestic and commercial waste and offers an alternative to long-term waste contracts for collection. Customers sign up for an account online and enter login details on the front of the BIGbin when using it. Once the customer has signed in, the BIGbin opens and customers can dispose of their waste. Customers are charged per load of waste.
The BIGbin is technologically enhanced and adapted to the regulatory requirement enforced by the Irish government, in line with the European Commission’s 7th Environment Action Program and its objectives for waste management. The compactor bins are installed with company custom-built smart technology which provide daily reports on usage and instant alerts if any mechanical issues occur. The technology furthermore tracks usage and when to be emptied.
The Company currently has 22 compactor bins fully operational on eleven active sites. There are two BIGBins on each site which allows for disposal of general, recycling and organic waste. Currently, eleven sites are servicing a base of approximately 5,800 repeat customers, each returning approximately every four weeks. Furthermore, the Company has additional five sites in planning permission and permit state.
The smart technology allows site owners or location operators, such as property management companies, to set up accounts for individuals to control and charge for waste disposal in a manner that could not be done before. Kollect provides location partners with a hosted solution that facilitates user registration and authentication, manages all user transactions including payment, and holds records of customer details and transactions. In return for hosting a BIGbin on a garage forecourts and shopping centre carpark or similar, the location partner receives typically 12 percent of each sale.
How can we help? Ask us a question or find us at our Global Head Office in Waterford, Ireland.
Waterford Enterprise Centre, 051-364495
Waterfall, Cork, 021-2428873
Harcourt St, Dublin, 01-6859092
Waterford Business Park, City Enterprise Centre,
Cork Rd, Waterford, Ireland