I'm curious how often in these cases was it actually user error [standing in the wrong spot] vs system error [GPS reporting a wrong location] vs driver error [driver navigated to wrong location, assumed user had walked away] vs driver malice [intentionally cancelling with no intent of pickup]. Most of the users getting canceled on assume the last, but I'd hope that either this sort of driver malice is rare or Uber has some sort of "driver fraud detection" algorithm.
I know you're not saying this, but it doesn't make sense to cite this as evidence that "Uber really is treating their drivers well! Look look, they get to push a button that cancels the trip! Wouldn't that make you feel empowered if you were a driver??"
I have a friend who works at Uber on Second, and he says the same things happens to Uber at their own office. It sends the drivers to the wrong alley.
Conclusion? Bad data and drivers who don't know where they are actually going equals a bad experience.
I mean it's not that hard to check the location of rider when driver cancels the trip. If he isn't at the specified pick-up location, charge the rider or else charge the driver.
If you ask to be picked up at MacArthur BART station in Oakland and you're not careful, your driver will get routed to pick you up in the middle of the freeway that happens to run overhead. Some locations are also GPS distorting due to tall buildings and you'll literally show up 1-2 blocks away from your location (long blocks in SF's case). GPS is great, but it's not perfect.
Look i'm not saying GPS is perfect, but having these checks might help prevent 10% of fraudulent cancellations.
Conspiracy theory: maybe showing that they actually have the tools could be unfavourable to them when/if the regulations are placed?
One reason that drivers can specify for a cancellation is that the rider wasn't at the pickup location. Even though it's the driver cancelling in this case, it's reasonable for Uber to charge the rider in my opinion. If this is the case, the poster is still being improperly charged the fee, but it's more about the driver lying about a cancellation reason than some plot on Uber's part.