A recent study published by Consumer Reports (CR) states that Instacart conducts experiments in dynamic pricing led by AI that, in some cases, increases the cost of certain products.
CR and its research partner, Groundwork Collaborative, found that the delivery app conducted these experiments at the platform’s retail partner locations — places like Kroger, Albertsons, Costco, and Safeway. In some cases, consumers are paying up to 23% more than other shoppers for the exact same product, the report says.
The software involved in the experiments, Eversight, is a SaaS product that offers groceries a retail pricing suite designed to “unlock revenue growth” and leverage “pricing solutions that scale your pricing strategy and reveal the best prices your customers expect.” Instacart revealed on its Eversight page that some shoppers “may see slightly higher prices” than others.
However, as previously mentioned, some of the price increases seem to be a little higher than “a little high.” A 23% price increase isn’t exactly chump change.
When reached for comment, Instacart referred TechCrunch to the former released statement where the company noted that “just as retailers have long tested prices in physical stores to understand what customers respond to, a small subset of our retail partners – 10 US retail partners who have already chosen to apply markups – are using Instacart’s Eversight technology to run limited online pricing tests.” The company also took issue with its so-called “dynamic pricing,” calling it an “AI-powered pricing experiment.” An Instacart spokesperson said: “These tests are not dynamic pricing – prices never change in real time, including in response to supply and demand. The tests are never based on personal or behavioral characteristics – they are completely randomized.”
Dynamic pricing has become more common in recent years, and many large e-commerce sites have been accused of using it. other recent report admitted that, because of the dynamic pricing used by Amazon, school districts across the US are paying higher prices for basic school supplies. Since then Amazon called the report “False and misleading.”
This story has been updated with an additional statement from Instacart.
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