Is Instacart using AI for dynamic pricing?

A recent study alleges Instacart is using AI-led dynamic pricing experiments on its platform.

How much more did Instacart shoppers pay?

Some shoppers reportedly paid up to 23% more for the same products due to these experiments.

Which stores are affected by Instacart's pricing tests?

The experiments allegedly occurred at Instacart's partner locations, including Kroger, Albertsons, Costco, and Safeway.

Home / Business and Economy / Instacart Accused of AI Price Gouging

Instacart Accused of AI Price Gouging

17 Dec

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Summary

Instacart allegedly used AI to experiment with dynamic pricing.
Some shoppers paid up to 23% more for identical products.
The technology is deployed at partner stores like Kroger and Costco.

Instacart is facing allegations of using artificial intelligence to conduct dynamic pricing experiments, which may have significantly increased costs for consumers. Research by Consumer Reports and Groundwork Collaborative indicates that some shoppers paid as much as 23% more for the same products.

These experiments reportedly took place at Instacart's retail partner locations, such as Kroger, Albertsons, Costco, and Safeway. The technology in question, Eversight, is a SaaS product designed to help grocers "unlock revenue growth" and optimize pricing strategies, with Instacart acknowledging that some shoppers "may see slightly higher prices."

Instacart has responded by referring to a prior statement, explaining that a small number of retail partners utilize its Eversight technology to conduct limited online pricing tests. This practice of dynamic pricing has become more prevalent, with similar accusations recently leveled against Amazon regarding school supply pricing.