The comedy drama, which featured stars including Jo Joyner, Claire Sweeney, Lisa Millett, Jodie Prenger and Denis Lawson, aired three episodes in April.
The show, which allegedly took four years to develop, focused on a group of people working at a female taxi company.
Candy Cabs' first instalment was watched by around 5.5m viewers, but audiences dropped to just 3.62m for the third episode.
BBC One has now decided not to commission a second series of the show, Broadcast reports.
A spokesperson for the broadcaster said: "Unfortunately we will not be bringing Candy Cabs back but we're looking forward to seeing more from the team behind the show and we're already talking to them about new ideas."
Watch a preview of Candy Cabs below: