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.
They claim they paid cancellation fees. Gett claims the charges are pending. At this point it would be stupid of them to not let those charges through though.
If Uber wasn't a douche, they would have just booked rides in the cars and personally talked to the drivers. Absolutely no harm in that. What they did shows an utter lack of tact.
These rideshare apps usually have you schedule for ASAP rather than for some future time, so chances are if you cancel it would be much sooner.
Not sure about this company, but for Uber the cancellation fee should only happen if you cancel after five minutes of scheduling a ride. I've seen Lyft and other rideshare companies have similar policies.