In many cities the collection of solid waste from businesses and apartment buildings is left as solely a private matter between property owners and private haulers. Several cities, however, compete against the private sector for commercial hauling. Cities justify this as a common-sense extension of existing capabilities. However, there are inherent problems with government provided services that make private-public competition dangerous for both the private sector and taxpayers. First, cities are able to take actions against their competitors that private sector robber barons can only dream about.
Cities can put up barriers against competitors through taxation and regulation.
Take for example the fees and bonds that some cities require of private sector commercial haulers. By strange coincidence, these cities also have their own commercial hauling operations. Other cities that do not have in-house commercial hauling operations typically do not charge for fees or permits. Cities claim these fees are needed to cover the cost of inspections and responding to resident complaints regarding overflowing dumpsters and debris scattered on the roads. Cities that do not have commercial hauling seem to be able to deal with these problems without any extra cost.