The current business paradigm entails a narrow, profit-centered and managerially-focused nature. This article proposes that the study of the collaborative economy necessitates an inevitable shift in the conventional business paradigm and suggests that the institutional school of marketing thought, in general, and the electric theory of marketing, in particular, offers a useful theoretical framework for investigating the theoretical impact of the collaborative economy on the value chain. Uber is used as an illustrative case, on which the electric theory of marketing is applied, to demonstrate how the archetype of the collaborative economy theoretically impacts the value chain and contributes to sustainability in the value chain in the transportation services industry. The study provides further insights in the form of suggestions and propositions for ensuring sustainability in the value chain of collaborative systems.Interestingly, in marketing, both the theoretical and conceptual tools to adopt a broader orientation, such as the institutional school of thought [11], as CE necessitates, are already in place. They have been developed several decades ago. These existing theories can describe new phenomena, such as CE, and equip scholars with useful analytical tools for a more comprehensive understanding of the topics of relevance for the study of CE's theoretical impact on the sustainability of value chains.Accordingly, we draw on classic theories from the institutional school of thought in marketing, in general, and Breyer's [10] electric theory of marketing [11], in particular, to answer the following research questions: (1) How does the collaborative economy transform the conventional business paradigm? (2) What is the theoretical impact of the CE on the value chain? And (3) what is the potential of the CE for achieving sustainability in the value chain? The institutional thought in marketing suggests that any "concern", or organization is simultaneously a buyer and a seller, or as in Breyer's [10] words, a "deficit" and an "excess". The acknowledgement of an intermingling, rather than a distinction between production and consumption, makes Breyer's theory particularly suitable for the study of the CE.