In addition, survivors will have the option to settle their claims with Uber without a confidentiality provision that prevents them from speaking about the facts of the sexual assault or sexual harassment they suffered.
Uber's arbitration policy had previously been challenged in lawsuits, according to CNN.
"We have learned it's important to give sexual assault and harassment survivors control of how they pursue their claims", he said. The company will now allow victims to choose the venue in which they wish to address sexual assault allegations, whether that be in open court, mediation or arbitration.
Uber said they will also disclose data on sexual assaults and other incidents to "foster accountability", but as of now, no time frame has been set to release that report. But for critics of the company, it's long overdue.
The policy change comes after a recent CNN investigation focusing on the assaut and abuse accusations against drivers.
Court records in a California class-action lawsuit revealed that the ride-sharing firm has argued that female passengers who speak up about being raped in an Uber must individually settle their cases through arbitration, a private process that often results in confidentiality agreements, The Guardian reported.
And the company gained a reputation for sexism past year after a viral blog post from a former engineer, according to The Washington Post.