The sharing economy, popularized by the likes of Airbnb and Uber, has enjoyed remarkably rapid growth over the last five years and looks set to scale new heights over the next decade. Some projections put the sector’s revenues at $335 billion globally by 2025, and the scope for further widening its geographic reach remains huge. But as with any fast-expanding sector, governments, regulators, and industry incumbents are taking greater interest, and the growth pains are becoming louder. Amid the confrontations and the name calling—not to mention legal problems from California to continental Europe—sharing-economy players must now adopt a fresh approach to external engagement. Some of the leading ones are tentatively developing a new tone, to be sure. In our view, however, they must demonstrate a greater willingness to collaborate with governments, to help shape emerging regulatory frameworks, and to take an active part in countering the recent volleys of negative publicity that could undermine their innovative potential. This article sets out some ideas to underpin such a strategy. Get the full story at the McKinsey & Company