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Uber Suffers From Massive Data Breach, Agrees to $148 Million to Settle Claims.

Uber's chief legal officer, Tony West, said the decision to come clean about the hack was made after major management changes at the company.

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Uber, bengaluru
Photo shows an exterior view of the headquarters of Uber in San Francisco. (VOA)

The ride-hailing service Uber has agreed to pay $148 million to settle claims that it concealed a massive data breach that exposed personal information of drivers and customers.

In November 2016, Uber learned that hackers had accessed personal data of about 600,000 Uber drivers, including their driver’s license numbers. Hackers also had stolen email addresses and cellphone numbers of 57 million riders worldwide.

Uber
Toyota Motor Corp. recently invested $500 million in working with the company on self-driving technology for the ride-hailing service.

The claims, filed in every U.S. state and the District of Columbia, said rather than inform the drivers involved, Uber hid the breach for more than a year and paid ransom to ensure the data wouldn’t be misused.

 

“This is one of the most egregious cases we’ve ever seen in terms of notification; a yearlong delay is just inexcusable,” Illinois Attorney General Lisa Madigan told The Associated Press.

Uber’s chief legal officer, Tony West, said the decision to come clean about the hack was made after major management changes at the company.

uber
The logo of the company. VOA

“It embodies the principles by which we are running our business today: transparency, integrity and accountability,” West said.

Also Read: Tech Giant Google Discusses its Privacy Before Senate Hearing

Each state will receive a part of the settlement based on how many drivers they have. Most states estimate each affected Uber driver will receive about $100. (VOA)

Next Story

Ride-hailing Giant Uber Files for IPO, Says ‘May Never Make Profits’

According to market sources, the company may provide a price range for its shares later this month and would go public in May

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Uber, bengaluru
Photo shows an exterior view of the headquarters of Uber in San Francisco. (VOA)

Global ride-sharing major Uber has warned in its IPO filing that the company may never make profits as its operating expenses are likely to increase “significantly in the foreseeable future”.

The company filed for its Initial Public Offering (IPO) on Thursday and would be listed on the New York Stock Exchange (NYSE) under the symbol “UBER”.

“We have incurred significant losses since inception, including in the United States and other major markets. We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability,” the company said in the “S-1” form or the IPO Prospectus submitted to the Securities and Exchanges Commission.

It further said that to remain competitive in certain markets, it has lowered the fares in the past and may continue to offer “significant driver incentives and consumer discounts and promotions”.

Uber app.

The decade-old company also warned that it may fail to develop and successfully commercialise autonomous vehicle technologies and expected that its competitors would develop such technologies before it.

“Such technologies may fail to perform as expected, or may be inferior to those developed by our competitors,” said the company in the IPO Prospectus.

Also Read- Study Claims, Men With A Diet Rich in Meat At Greater Risk of Death

The company noted that as of December 31, 2018, it had 91 million or 9.1 crore monthly active platform users. There were 3.9 million or 39 lakh drivers on the platform by the end of 2018.

According to market sources, the company may provide a price range for its shares later this month and would go public in May. (IANS)