Comment by Dylan16807

> They both refresh their equipment at the same rate.

I wish you'd said that upfront. Especially because the comment you replied to was talking about replacing at different rates.

So your version, if company A and B are refreshing at the same rate, then that means six months before B's refresh company A had the newer taxis. You implied they were charging similar amounts at that point, so company A was making bigger profits, and had been making bigger profits for a significant time. So when company B is able to cut prices 5%, company A can survive just fine. They don't need to rush into a premature upgrade that costs a ton of money, they can upgrade on their normal schedule.

TL;DR: six months ago company B was "no longer competitive" and they survived. The companies are taking turns having the best tech. It's fine.