Consumer Reports and Groundwork found Instacart running AI-driven pricing experiments that led to different customers paying different prices for identical items, Audacy reported. In coordinated tests across Safeway, Target, and later Albertsons, Costco, Kroger, and Sprouts, about three-quarters of products showed variations — sometimes up to five different prices and as high as $2.56 per item. Instacart confirmed the experiments, which involve a subset of 10 retail partners.
Audacy reported the price differences could add up to about $10 per basket and roughly $1,200 annually for a typical four-person household. A September survey found 72% of Instacart users oppose differential pricing. Instacart’s 2022 acquisition of AI firm Eversight underpins these tools, raising concerns about data-driven experimentation and consumer price sensitivity.
The DX Brief
- Tests found item prices varied for about 75% of products, with differences up to $2.56 per item
- Instacart confirmed limited, randomized pricing tests with 10 retail partners
- Chains tested included Safeway, Target, Albertsons, Costco, Kroger, and Sprouts
- Potential impact: up to $10 per basket and about $1,200 extra annually for a typical household
- 72% of surveyed Instacart users oppose differential pricing
- Experts say the tests measure price sensitivity; critics warn of AI-driven “fictitious pricing” and expanding data collection
Read the full article at Audacy
