A local rubbish collector says Tauranga City Council's plan to take over kerbside collection of glass later this year is deterring established commercial operators from introducing their own separate services.
But a councillor says having the commercial sector in charge has "failed", and it is time for the city to take back control of the service.
Robin Horne of Bin Boys said the council's proposal to introduce a rates-funded glass recycling service by September had created "uncertainty" for businesses.
"Rubbish companies are not prepared to buy extra trucks and bins only for the council to say 'we don't need you' in two years time."
The public outcry over the loss of glass recycling pick-ups had clearly shown people wanted a kerbside glass service and there was a commercial opportunity, he said.
"Once you get one company to do it the other companies will lose customers so they will eventually have to provide it too.
"That's what happened with the recycling - we were reluctant to do it, but then one did."
Councillor Steve Morris, chairman of the council's Environment Committee, said it was "a bit rich" to be offering a solution only after the outcry.
"The fact is the status quo has failed."
He said commercial operators would be able to tender for the proposed rates-funded collection service.
Meanwhile, at least two new home pick-up glass collection businesses have sprung up in the wake of Waste Management's decision.
John Bohl has started Get Your Glass offering online booking for one-off pick-ups of either colour-sorted glass ($5) or unsorted ($8).
"I set it up over the weekend... I did my first pick-up on Monday."
The Otumoetai man said he had been in the passenger transport business, but it was not going well, so he decided to put his van to better use with a new venture that met a community need.
He was aware of the council's decision but not worried it would limit the lifespan of his business, saying there were lots of complicating factors.