MYTAXI has announced that they will introduce a new €5 cancellation fee for customers next month.

The popular e-hailing taxi app – which currently operates in Dublin, Galway and Limerick – revealed today that from late June customers who book a taxi and cancel it two minutes later when their driver is en route will be have to pay a €5.

Punters who also aren’t at the pick up address within five minutes of the driver’s arrival will also be charged a cancellation fee.

They explained that the money will be deducted from the debit or credit card registered to the account holder.

Mytaxi said that they are brining in the new levy to “maximise fleet efficiency.”

They said in a statement on their website: “In order to improve the efficiency of the service we’re introducing a €5 passenger cancellation fee. You can still cancel your trip at any time, but please note you may be charged a fee if you cancel your booking 2 minutes after a driver accepts and they’re en route to pick you up.

“We will start charging this fee in late June. To give you a chance to adjust to this charge there is an introductory period where we are warning passengers with a popup message on occasions that would qualify for a charge in the future. We hope this stage will help passengers adjust to the new process and reduce the volume of cancellations on the network.”

They added that over the last six months just 3 per cent of passengers cancelled on their driver, which “means a very small percentage of our passengers will be affected by this new change.”

The announcement of the charge has been met with a flurry of criticism on social media.

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