Coinstar, perhaps most famous for its automated coin counting and deposit machines commonly seen in supermarkets around the world, as well as DVD rental machines is extending its reach even further with an undisclosed investment in EcoATM, maker of kiosks that pays you for recycling your old electronics.
E-waste is a mounting problem, and because these electronics are made up of multiple materials — some that are more toxic to the environment than others — many former owners have no idea how to best dispose of them. Some manufacturers have even started programs allowing people to send used items back for proper disposal. EcoATM’s goal is to make this whole process easy and rewarding.
When you drop off electronics at one of the company’s kiosks, it instantly assesses the value and pays you in either cash or coupons. The stations use visual identification techniques to determine how much should be doled out. EcoATM has partnerships with 50 companies around the world that come and retrieve the waste either to resell, or to properly recycle the components.
Coinstar CEO Gregg Kaplan says he expects EcoATM to become a lucrative business, estimating that about $7 billion worth of used mobile phones are thrown away in the U.S. every year. Their components can be worth even more. According to SmartPlanet, about 16,000 kg (35,274 pounds) of copper, 350 kg (772 pounds) of silver, 34 kg (75 pounds) of gold and 15 kg (33 pounds) of palladium are recovered from every million cell phones recycled.
"As a leader in automated retail, Coinstar is continually looking for kiosk concepts that are innovative and compelling," says Gregg Kaplan, president and COO of Coinstar. "We believe EcoATM could be a viable business, as it provides an easy way for consumers to properly resell and/or recycle the more than $7 billion in used mobile phones that are annually retired in the U.S. while creating a sustainable secondary market for these devices."
The EcoATM kiosks visually and electronically scan used devices such as mobile phones and iPod devices to establish their value, paying consumers on the spot. The collected devices are then sold into worldwide secondary markets or recycled to reclaim the materials.
"We value Coinstar’s expertise and longevity in the automated retail space and are thrilled with their support in the future success of our automated e-cycling solution," says Tom Tullie, ecoATM CEO. "EcoATM delivers convenience and immediate financial incentive to consumers looking to retire used devices and simultaneously creates a new standard of accountability and responsibility for the re-use of electronic devices."
Earlier this year, Jens Molbak, Coinstar founder, joined EcoATM as a board member and investor.
