If drivers keep getting requests cancelled, they will be less prompt and enthusiastic about actual ones. The cancellation fee is calculated on the assumption that frequent orders will not be deliberately placed to be subsequently cancelled.
I agree that they may have violated the spirit of the contract. But the contract specifically handles the case of cancelling an order (including some restitution), so I would hardly consider it fraud.
Running into the path of a moving car is only fraud if you claim the driver is at fault. If you admit responsibility and pay for any damages then it is not fraud.
