In October 2016, Uber experienced a data security incident that resulted in a breach of information related to rider and driver accounts.
Khosrowshahi, who took over after former CEO Travis Kalanick resigned in June, said an internal investigation is being conducted into why the hack was kept secret for more than a year. He was not at the helm when it happened.
After the hack he said the company contacted those responsible and 'obtained assurances that the downloaded data had been destroyed'. Bloomberg says that Uber actually paid the hackers $100,000 dollars to delete all the information they stole from the company.
Bloomberg reported that Uber Chief Security Officer Joseph Sullivan and one of his deputies had been ousted in connection with the breach. Potential exposure under the NDB scheme is only likely to exacerbate the concerns, with significant penalties for Australian companies that fail to protect customers' PII or fail to quickly take appropriate steps after a breach.
As well as trouble potentially brewing in Cali over the hush up, New York Attorney General Eric Schneiderman has also launched an investigation into Uber's cockup - by our reckoning, perhaps only the fifth worse thing the controversial bad-boy biz has done over the past year. However, the information has now been revealed after the tech company's new CEO, Dara Khosrowshahi, opted to publicly announce it in a bid to reassure users he was making big changes.
It's the latest blow to Uber, at a time when the rideshare company is trying to improve its public image.
The National Cyber Security Centre (NCSC) is investigating if this breach has affected Uber customers in the UK.
Khosrowshahi said Uber passengers need not worry as there was no evidence of fraud, while drivers whose license numbers had been stolen would be offered free identity theft protection and credit monitoring.
"While I can't erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes", Khosrowshahi wrote.
There also is an option labeled "I think my account has been hacked" under the "Help" section of the Uber app for users who find suspicious activity on their accounts.