PepsiCo-backed touchless recycling machinery start-up secures investment for US expansion
16 Nov 2021 --- Olyns, a US-based packaging recycling company, has raised US$1 million in a seed round to develop touchless recycling machines for installation in popular indoor facilities throughout the US and abroad.
With the national recycling system reportedly unable to meet recycling demands, the company aims to extend consumer’s recycling options by using Olyns devices via a mobile app, which offers rewards.
Each Olyns machine collects about 1.5 metric tons of recycled material per year, helping to reduce plastic waste and meet the 1 billion pound commercial demand for recycled PET.
Earlier this year, PepsiCo partnered with Olyns to build a pilot program in one Bay Area Safeway store. “The program was successful and has expanded to include four Safeway stores: Milpitas, Santa Clara, Sunnyvale, and Cupertino.”
Olyns reimagines DRS
Philip Stanger, co-founder and CEO at Olyns, tells PackagingInsights Olyns Cubes can identify, pulp and separate plastic, aluminum and glass like other reverse vending machines.
However, when it comes to revenue, containers, and collection and transportation, Stanger explains Olyns recycling devices differ from more conventional bottle recycling machines in crucial ways.
“First, Olyns is pioneering a new business model to support the collection of recyclables. The growth of retail media and sustainability marketing provide Olyns the opportunity to generate revenue from advertising and data rather than from deposit return systems (DRS) or scrap value.”
Philip Stanger, co-founder and CEO at Olyns.In practice, this means the Olyns system can be successfully installed in every jurisdiction around the world rather than just those few that provide a government-run deposit incentive for recycling.
“Second, Olyns’ system is based around artificial intelligence and container machine learning identification. As we don’t rely solely on barcodes, Olyns has the flexibility to collect many other sorts of containers and items such as hot cups, thermoform containers, light bulbs and batteries.”
“Finally, Olyns uses a crowdsourced ‘gig economy’ model to support the collection and transportation of deposited materials from the Olyns Cubes – think DoorDash for recycling.”
The machine’s design and supporting software are designed to enable community members who want to earn money to service the machines. This inclusiveness enables flexibility, scalability and rapid growth in non-traditional recycling markets.
Consumer incentives
Consumer interaction with Olyns Cubes is completely electronic and touch-free. To make use of the facilities, consumers first create an Olyns account prior to login and register with the machines.
The system counts the deposited containers and reimburses the value via PayPal. Therefore, consumers do not need to touch the devices as no cash or receipts are involved.
Innova Market Insights data suggests 55% of US consumers regard consumer behavior as the main culprit in the global plastic pollution crisis.
Also, according to the market researcher, the pandemic has resulted in nearly half (49%) of US consumers observing a rise in the importance of packaging’s protective qualities.
Moreover, Olyns’ plastic recycling technology encourages consumers to recycle through psychological incentives. “Our latest mobile app feature has a ‘My Impact’ dashboard, where our community members can see the impact their recycling is having on the planet: the cumulative number of bottles/cans they are saving from landfill/oceans and the amount of CO2 they are keeping out of the air.”
Stanger highlights it’s crucial for consumers to be aware of the influence of their recycling actions and this is what leads to a psychological reward associated with using Olyns.
Each Olyns machine collects about 1.5 metric tons of recycled material annually.
Industrial repercussions
Stanger explains by boosting the national recycling system, “millions of tons of recyclables” won’t end up in landfills or the oceans. Moreover, Olyns keeps PET containers clean, supporting the high excess demand for recycled PET while assisting CPG companies in meeting environmental sustainability pledges and government recycling requirements.
The co-founder and CEO says the US recycling system is “broken” and suggests grants and subsidies for modern recycling options, such as Olyns, can ensure increased accessibility and convenience for consumers. Here, Stanger highlights the issue that 86% of plastic does not get recycled.
“Research shows a majority of people want to recycle, but many no longer have access to convenient recycling due to the recent closure of recycling centers across the US.”
Furthermore, Innova Market Insights found 28% of US consumers have improved their household recycling behavior during the pandemic, suggesting the appetite for recycling is on the rise.
Global expansion
Stanger indicates Olyns’ future moves will include operating the machines and system in non-DRS states early next year. In late 2022 or early 2023, the company plans to scale up the installment of the recycling cubes significantly.
The start-up is partnering with various contract manufacturers to build thousands of recycling cubes. Also, agreements with prominent US grocery chains have been made and further national and international partnerships are in planning.
By Natalie Schwertheim
