The Cell ATM: Cutting Waste & Costs

When parents buy their kids expensive cell phones, I’m guessing they don’t expect it will get their kid a beating at school. But, I’ve heard from both a NYC social worker and a Manhattan resident that often, kids brings their cell phones, such as the coveted iPhone to school, and while showing it off the bullies plot a plan to steal it. And what do they do with it? No, they don’t insert their own SIM card and use it, they sell the phone for cash at stores accepting used mobile phones. This is precisely the reason why these stores’ new competitor, San Diego-based startup ecoATM, is a winner in our book. The SoCal startup chose a youth-oriented nonprofit as its charity. ecoATM has joined forces with another San Diego organization, Tariq Khamisa Foundation, a nonprofit that works to prevent gang activity and violence in the area. ecoATM provides the organization with cell phones for one of its mentoring program so the mentors can communicate with the kids. It also donates an undisclosed amount to the Tariq Khamisa Foundation for each phone it collects.

A sign of its impending growth is the news that the startup recently won a $20,000 award as one of the three winners at the Tenth Annual PitchFest Business Plan Competition in the sunny southern California city. Now, while we know $20,000 won’t do much for a startup, especially given that the competition was for companies that have less than $2 million in venture funding, it gives ecoATM the boost and credibility it needs to shop around for significant funding. While some groups of kids may be clipping phones, ecoATM’s real customers will welcome the chance to recycle old phones and get a bit of cash toward their next phone, or even donate the money to charity!

The company’s first installation of an eCycling Station at the Nebraska Furniture Mart in Omaha has proved to be a success. The machine enables users to deposit old phones and choose to get either money toward a trade-up, a retailer gift card or to donate the money to charity. The company plans to add more stations to retailer in San Diego, Boston, Dallas, and Seattle during the first quarter of 2010.

In addition to saving consumers money, this company will help keep unnecessary waste from landfills. During recent years, most phone recycling programs were with donations to participating retailers working with women’s groups, to get battered women old phones that can still dial 911. But, what is the donation rate? In our busy lives, how likely are we to remember to add one more errand to the to-do list? Even if our heart is the right place, our schedule may not permit action. But, with the promise of in-store machines, we may be able to take action without adding one more entry to the to-do list. For these reasons, we think this is just the beginning for ecoATM.

Click here to learn more about ecoATM and to stay abreast of eCycling Station additions.