Cancellation Fee

Requirements Clarification & Assessment

1. Objective Clarification:

   • Primary Goal: Determine the optimal cancellation fee to balance between maximizing revenue and minimizing ride cancellations.
   • Secondary Goals: Retain both drivers and riders by ensuring satisfaction and preventing churn.

2. Stakeholder Interests:

   • Drivers: Prefer higher cancellation fees to receive more compensation for canceled rides.
   • Riders: Prefer lower fees to avoid penalties but also want reliability in service.

3. Key Questions:

   • What percentage of the cancellation fee is distributed to drivers?
   • How does the cancellation fee affect rider behavior in terms of future bookings?
   • What are the target metrics for success (e.g., reduction in cancellation rates, increased revenue)?

4. Assumptions:

   • A higher cancellation fee deters cancellations but risks losing riders to competitors.
   • A lower cancellation fee may not effectively reduce cancellations but maintains rider loyalty.

5. Constraints:

   • Legal and regulatory considerations in different regions.
   • Market dynamics and competitive actions.