The Short:
Following the mass global fallout of the data breach at Uber last year that was only just revealed this month, the ride-hailing major is sending its senior troops all over the world to work with local regulators on the effects of the breach and to address how the company is handling the matter.
The Long:
Scandal-scarred Uber is on full fire-fighting mode across the world as regulators in the U.S. and overseas begin scrutinizing several aspects of their business after the 2016 data breach involving 57 million accounts and 600,000 driver accounts.
Investigations are afoot to assess the manner in which the breach was covered up – by paying the hackers $100,000 to keep quiet.
U.S. lawmakers, including Republican Senators John Thune, Orrin Hatch, Jerry Moran and Bill Cassidy have asked Uber to respond by Dec. 11 to a letter they sent the CEO asking for details about the data breach and subsequent cover-up.
Uber’s new CEO, Dara Khosrowshahi, has also received a letter from Democrat Senator Mark Warner asking for details of Uber’s security systems and why the breach was not disclosed when it happened. Sen. Warner is an advocate of the on-demand technology industry that Uber is a part of.
Earlier this month a consortium of investors led by SoftBank said it would invest as much as $10 billion in Uber in the form of fresh stock and existing stock purchases. Details are expected to be revealed to existing investors in formal tender offers this week.
SoftBank has not yet announced any plans to renegotiate the deal, but one source says that they factored in the negative impact of the breach in their initial offer. However, another source maintains that SoftBank could still use the escalating situation around the breach to secure more favorable terms for itself.
Meanwhile, Uber is busy sending its executives to key markets, presumably wherever the breach has the potential to negatively impact the most number of users and drivers. These executives will likely work with local regulators to formulate the best next steps and ensure future compliance with data theft and other security incidences.
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