Cancellation Fee

Definition

Payment to driver when customer cancels after waiting period, compensating for time and travel to pickup.

Related Terms

No-Show

When a customer doesn't appear for pickup or delivery after the waiting period.

Wait Time

Time spent waiting at pickup locations, sometimes compensated after a certain threshold.

FAQs

How much is the fee?

Usually $3-$10 depending on platform and market.

When do I get it?

After waiting required time (usually 5 minutes).

Similar Terms

Base Pay

Minimum payment for a delivery or service before tips, set by the platform based on distance and other factors.

Platform Fee

Percentage or amount taken by gig platforms from payments, typically 10-40% depending on the platform.

Service Fee

Additional fee charged by platforms to customers or workers for using the platform's services.

Bonus/Incentive

Extra payment offered by platforms for completing certain goals like number of rides, deliveries, or referrals.

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Last updated: January 18, 2026

Reviewed by GigFinance Team, Gig Economy & Finance Experts

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Our team includes CPAs, former gig workers, and financial experts who personally test platforms and verify earnings claims. We follow strict editorial guidelines to ensure accuracy and objectivity.

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Important Disclaimer: This content is for informational purposes only and should not be considered tax, legal, or financial advice. Consult a qualified professional (CPA, tax attorney, or financial advisor) for advice specific to your situation.

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