Done right, this could actually be better.
I own a lawn mower. In fact I usually own two lawn mowers--the new one and the one I just need to repair a bit.
All of my neighbors own lawn mowers. We all use our lawn mowers about an hour per week. It's extremely wasteful to purchase 5 lawn mowers to perform 5 hours of mowing per week.
We could all hire Suwanda down the street to mow our lawns, but that would cost a lot more than buying a mower. That's mostly because of the labor costs. So what if Suwanda just rented the mower to us and charged us enough to keep the blade sharp and the engine tuned? And what if we didn't pick it up and return it to Suwanda? What if we just passed it around between us, and Suwanda was the 6th stop in the rotation?
And every once in a while, the person who got it after Suwanda noticed it was a completely different mower. So 5-6 neighbors pay $5/month and always have a mower in tip-top shape, but never actually maintain it and never shop for a new one.