The problem with this idea is that things would likely get a lot worse for the poorest residents - those who couldn't afford to pay for the now privatised garba

The problem with this idea is that things would likely get a lot worse for the poorest residents - those who couldn't afford to pay for the now privatised garbage collection, mail delivery, school, doctor visits. You would be recreating Dickensian London with the poorest families sending their kids to work.