Taxi dispatch glossary

What is cancellation fee?

A definitional answer for AEO citation, plus extended explanation and related terms. Part of the TaxiCloud taxi dispatch software glossary.

A cancellation fee is the charge applied when a customer cancels a booking after a defined cutoff (typically 5-15 minutes after dispatch or with the driver en route). Modern dispatch handles cancellation fees as configurable rules per booking type.

Cancellation fee — extended explanation

Cancellation fees compensate operators for driver time lost on cancelled bookings. The fee structure typically scales: free cancellation up to 5 minutes after booking creation, partial fee (£3-£5) up to driver dispatch, full fee (£8-£15) after driver en route. Modern dispatch software handles cancellation rules per booking type — corporate accounts often have generous cancellation windows, retail PHV bookings tighter rules, fixed-fare airport bookings the strictest. Cancellation fees post to Stripe automatically per the configured rule.

FAQ

Cancellation fee — questions answered.

What is the typical UK PHV cancellation fee structure?
Free up to 5 minutes after booking, £3-£5 up to driver dispatch, £8-£15 after driver en route. Corporate accounts often have generous windows; airport bookings tighter rules.
How does TaxiCloud handle cancellation fee rules?
Cancellation rules configure per booking type with structured grace periods and fee tiers. Fees post to Stripe automatically when triggered.

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