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The Radius for Pickups value is important because it will determine how far your drivers will go for a booking collection. You would enter the postcode for your base of operations, and then set your total radius of operation in miles (for example 100 miles) which will then be the default for all bookings.
Anyone attempting to place a booking where the pickup postcode is outwith the 100 mile radius of operations, will be told immediately that they are outwith your catchment area. They can then either call to discuss feasibility for the booking (it may be important and they may want your specific limo, in which case they may agree to pay a premium) or they can change their pickup postcode if this is possible for them... or they could choose to go elsewhere.
It makes sense to have a reasonable radius of operation without jeopardising the feasibility of the actual booking.