Another detractor was Uber (UBER, Financial). April was its best month of overall activity since its initial public offering, but its share price weakened during the second quarter. Uber continues to gain market share, and management reiterated that it expects to achieve profitability in the latter half of 2021, both positive indicators. However, this news was overshadowed by a larger-than-expected charge for the company’s U.K. driver reclassification, which fueled concerns about higher regulatory costs and the slow return of drivers in certain large markets, such as New York City. We believe these concerns are likely to abate as investors become more comfortable with Uber’s pricing power while overall labor supply improves through the second half of 2021.
From Spiros Segalas (Trades, Portfolio)' Harbor Capital Appreciation Fund second-quarter 2021 commentary.
