Data from 57 million users and drivers were compromised in a data breach incident Uber concealed for more than a year.
Two members of the Uber information security team who "led the response" that included not alerting users that their data was breached were let go from the San Francisco-based company effective Tuesday, according to Khosrowshahi.
A pair of hackers discovered the archive of 57 million Uber riders and drivers and stole names, email addresses, phone numbers as well as driver's license numbers of 600,000 Uber drivers. Hackers also stole names and license numbers of around 600,000 USA drivers.
"None of this should have happened, and I will not make excuses for it", Dara Khosrowshahi, who took over as chief executive officer in September, said in an emailed statement.
"By choosing not to disclose this massive data breach and attempting to mitigate the breach by paying the hackers to destroy the data, Uber has essentially rolled the dice with its customers' and drivers' personal identities", law firm partner Cari Campen Laufenberg said in a release. To further hide the damage, Uber executives also made it appear as if the payout had been part of a "bug bounty" - a common practice among technology companies in which they pay hackers to attack their software to test for soft spots.
Tech Crunch also added that Uber could face problems in their home state of California for the attempted data breach cover up.
"Deliberately concealing breaches from regulators and citizens could attract higher fines for companies", James Dipple-Johnstone, deputy commissioner of the UK Information Commissioner's Office, said in a statement.
Despite the fact this happened over a year ago, Uber chose to keep it a secret from the public.
Khosrowshahi says hackers accessed the data through a third-party, cloud-based service. The two employees were removed this week.
Attorneys general in at least four US states, Connecticut, Illinois, Massachusetts and NY, said they had launched investigations into the breach.
"We are investigating the breach", said Jepsen spokeswoman Jaclyn Severance.
Uber said earlier this month it had struck an agreement to allow Japan'sSoftBank Group to invest up to $10 billion, most of it by buying shares from existing investors. In a coincidentally timed announcement shortly before Uber's hacking disclosure Tuesday, Whitman said she was stepping down as head of Hewlett Packard Enterprise Co.
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. While Khosrowshahi is promising change, Kalanick's place in a leadership role serves as a reminder they are keeping someone who signed off on controversial issues tied to the company.