Instacart Accused of Inflating Grocery Bills Through AI Pricing Experiments
A recent study published by Consumer Reports (CR) has raised concerns about Instacart’s use of AI-led dynamic pricing experiments that allegedly inflate the cost of certain products for consumers. The report, conducted in partnership with Groundwork Collaborative, found that Instacart was conducting these experiments at retail partner locations such as Kroger, Albertsons, Costco, and Safeway. Some consumers were reportedly paying up to 23% more than others for the same products.
The software used in these experiments, Eversight, is a SaaS product that offers grocers a retail pricing suite aimed at maximizing revenue growth and optimizing pricing strategies. Instacart acknowledges on its Eversight page that some shoppers may encounter slightly higher prices, but the extent of the price discrepancies found in the study raises concerns.
When approached for comment, Instacart defended its practices by stating that a select group of its retail partners use the Eversight technology to conduct limited online pricing tests. The company emphasized that these tests are not dynamic pricing, as prices do not change in real-time based on supply and demand. Instacart also clarified that the tests are randomized and not influenced by personal or behavioral characteristics.
Dynamic pricing has become a prevalent strategy in e-commerce, with many major platforms facing scrutiny for its implementation. A recent report highlighted how Amazon’s dynamic pricing has led to higher costs for school districts purchasing essential supplies. Amazon refuted the claims made in the report, calling them flawed and misleading.
This story has been updated with an additional statement from Instacart.
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