Mr Khosrowshahi's appointment ends months of speculation about who would take the top job at the troubled firm.
He replaces co-founder Travis Kalanick, who resigned in June following investor pressure after months of turmoil.
Experienced leader
Mr Khosrowshahi came to America when he was nine years old, after his family fled Iran on the eve of the Iranian Revolution.
In 2005, he became chief executive of the online travel site Expedia, which operates in more than 60 countries.
In a email to staff posted on its website late Tuesday, the company said it was confident Mr Khosrowshahi was "the best person to lead Uber into the future."
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