A pair of hackers discovered the archive of 57 million Uberriders and drivers and stole names, email addresses, phone numbers as well as driver's license numbers of 600,000 Uber drivers.
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.
Dowling says mistakes and breaches are bound to happen in the technology field, and if they do the company should be honest about it.
It's worth pointing out that while the company is now alerting the authorities, California's data security breach notification law requires disclosure in "the most expedient time possible and without unreasonable delay". Hackers also stole names and license numbers of around 600,000 USA drivers. "We are changing the way we do business".
NY law requires that companies notify the Attorney General and consumers if data is stolen. But viewing this data breach cover up as an incident that only Uber could commit misses the writing on the wall.
And the cyber-thieves made off with 600,000 USA driver records that included their license numbers.
The hackers gained access of information that was stored on GitHub.
Massachusetts Attorney General Maura Healey says she has launched an investigation into Uber after the company acknowledged a massive data breach a year ago.
"I'm just used to these breaches all the time; unfortunately it's a common occurrence", said traveler Ryan Eytcheson who was jumping in his Uber after flying in from Los Angeles.
The company's reputation has already been dragged through the mud this year, and for many, the breach and cover-up was the icing on the cake.
According to security firm Venafi, the breach at Uber is an example of how unprotected machine identities can lead to data breaches.
The severity of the incident was compounded amidst revelations that the company had paid $US100,000 ($A132,000) to the hackers to delete the data.
The FTC hasn't commented on whether or not it will investigate the matter, but an agency spokesperson said in an emailed statement that it is "closely evaluating the serious issues raised". "But rather than fear the breach, organisations need to prepare with a defined, well-practiced response strategy that involves security teams, legal, executive leadership, and communications/PR support", he said.
Uber admitted that it failed to take the correct actions. Sullivan, formerly the top security official at Facebook Inc and a federal prosecutor, served as both security chief and deputy general counsel for Uber.
Uber has also come under fire over allegations of sexual harassment and a misogyny, culminating in a report from former Attorney General Eric Holder on its workplace culture.
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Uber aims to eventually give driver-free passenger rides , which is the only way such a service would be economically feasible. Many other brands of autonomous vehicles are planning o land their driverless cars on road.
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