A joint report has revealed that the Instacart app conducted pricing experiments that displayed different prices for the same products from the same store to different users. The average difference between the highest and lowest displayed price was 13%, with disparities reaching up to 23% on individual products. The company denied using personal demographic data and described the experiments as random and limited.
A joint investigative report by Consumer Reports, Groundwork Collaborative, and More Perfect Union has revealed opaque pricing practices within the Instacart grocery delivery app. The study uncovered that the app displayed different prices for the same products from the very same store to different users, as part of what it described as "pricing experiments."
The experiment involved 437 shoppers across four U.S. cities, each adding the same list of products to their shopping cart via the app from the same store. The results showed that approximately 75% of grocery products were displayed with multiple prices, with up to five different prices recorded for a single product. The average difference between the highest and lowest displayed price was 13%, while the highest price disparity on an individual product reached 23%.
Following the report's publication, Instacart provided an explanation stating that these experiments were conducted by a small group of retail partners (only 10 partners) who already apply a markup to their products. The company confirmed that these tests were random and time-limited, aiming to help partners understand consumer preferences. The company categorically denied using personal demographic data in this process and emphasized that it does not represent dynamic pricing based on supply and demand.
Reports indicated that most tests were conducted in Safeway and Target stores. Target stated that it is "not affiliated with Instacart and is not responsible for prices on its platform." For its part, Instacart mentioned it was "evaluating different methods" to cover platform costs at the time of the study but has since halted pricing tests on Target orders. The company published a blog post attempting to explain how these tests, which showed higher prices, actually aim to help retailers invest in lower prices in the long term.
Source: Engadget | Exclusive coverage from AI Tools Oasis
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