Scandal-hit Uber hits the road to reassure regulators

TOKYO: Uber executives are travelling the globe to reassure regulators that the company is changing the way it does business, after a massive data breach became the latest controversy to hurt the ride-service firm’s reputation. Uber Technologies Inc is also continuing talks with Japan’s SoftBank Group Corp over an investment, Brooks Entwistle, Uber’s recently appointed chief business officer for Asia Pacific, told Reuters on Monday.

Uber disclosed last week that it covered up an October 2016 data breach involving 57 million customers and about 600,000 drivers. The company said it paid two hackers $100,000 to destroy the stolen data and keep the matter a secret.

The revelation, made by Uber’s new Chief Executive Officer Dara Khosrowshahi in a blog post, prompted governments in countries including Britain, the United States, Mexico, Australia and the Philippines to launch probes into the breach and Uber’s handling of the matter.

The global backlash will test Uber’s new collaborative approach to regulators, a stark change from the rule-breaking culture created by former CEO Travis Kalanick. “We have changed tacks in so many ways in dealing with regulators, dealing with governments,” Entwistle said in an interview in Tokyo, where he is meeting Japanese officials and potential business partners. Nevertheless, Chicago Mayor Rahm Emanuel and Kimberly Foxx, the public prosecutor for Cook County, Illinois, said on Monday they filed a consumer fraud lawsuit against Uber for its failure to protect the data of its customers and drivers, accusing the company of violating local laws by failing to promptly disclose the breach. “We are committed to changing the way we do business, putting integrity at the core of every decision we make, and working hard to regain the trust of consumers,” Uber said in a statement.

Also on Monday, fresh questions came from US lawmakers demanding an explanation for the company’s handling of the breach. Republican senators John Thune, Orrin Hatch, Jerry Moran and Bill Cassidy sent a letter to Khosrowshahi seeking answers about the data theft and cover-up, which they called “a serious incident that merits further scrutiny.” The senators requested a response from Uber by Dec. 11. Hatch chairs the Senate Committee on Finance and Thune chairs the Commerce Science and Transportation Committee. In a separate letter sent Monday, Senator Mark Warner, a Democrat and advocate of the technology industry including the ondemand sector that includes Uber, sent a letter to Khosrowshahi with detailed questions about Uber’s security systems and rationale for covering up the breach.

The disclosure of the 2016 data breach at a time when Uber is trying to bring in SoftBank as an investor has spurred speculation about the price of the deal. SoftBank and Dragoneer Investment Group agreed on Nov. 12 to lead a group that would invest as much as $10 billion in Uber, people familiar with the deal previously told Reuters. The group plans to directly invest $1 billion to $1.25 billion at Uber’s current $69 billion valuation, and also buy at a lower valuation shares held by existing investors and employees. —Reuters