The sharing economy, a rising pattern in consumption behavior that is essentially based on accessing and reusing products to utilize idle capacity, presents both tremendous possibilities and significant threats for emerging as well as incumbent businesses. As of today, it is unclear whether this economy is merely another ephemeral trend in consumption or whether we are experiencing a real shift in how goods are accessed, distributed, and used. Furthermore, little is known about how existing business models are affected by the sharing economy. These two issues represent the central motivation for the development of this article. Consequently, an examination of why the sharing economy has the potential to produce a long-term transformation in consumption behavior is followed by a consideration of how this change might affect companies' business models. Based on a renowned business model framework and a variety of current illustrative examples, we propose central questions managers have to ask themselves in order to be prepared to respond to changes brought about by this new economic trend.

This is an MIT Sloan Management Review article. How do consumers access, buy and use their favorite products and services? While individuals traditionally have seen ownership as the most desirable way, increasing numbers of consumers are paying to temporarily access or share products and services rather than buy or own them. This so-called "sharing economy"is growing rapidly, although estimates for the current size of the nascent market vary substantially. Well-known examples of successful startups built on collaborative consumption systems include Airbnb Inc. Growth in sharing systems has been particularly fueled by the Internet with its rise of social media systems, which facilitate connections between peers eager to share their possessions. The central conceit of collaborative consumption is simple: obtain value from untapped potential residing in goods that are not entirely exploited by their owners. The sharing economy might represent a serious threat to established industries. However, the authors' research suggests six ways in which companies can respond: (1) by selling use of a product rather than ownership, (2) by supporting customers in their desire to resell goods, (3) by exploiting unused resources and capacities, (4) by providing repair and maintenance services, (5) by using collaborative consumption to target new customers, and (6) by developing entirely new business models enabled by collaborative consumption.