Instacart Busted Charging Different Amounts for Identical Items

The home delivery app Instacart is charging people vastly different prices for identical items, a study led by Consumer Reports has found. The report warned that the pricing differentials could be worth as much as $1,200 a year to a family which uses the app for its regular shop. The report used 437 shoppers to place identical orders at branches of stores including Target and Safeway in four cities—Seattle, Washington; Washington, D.C.; Saint Paul, Minnesota, and North Canton, Ohio—then compared the prices for each order. The highest price difference found was 23 percent. In one case a box of Cheerios cost one shopper $4.99 and another $6.12. In total 75 percent of items were priced differently, the research by Consumer Reports, the non-profit think tank Groundwork Collaborative, and the non-profit news organization More Perfect Union found. The reasons for the price differentials are not clear but the report found that Instacart can use demographics such as household income, sex, and age to adjust prices “dynamically.” The firm denied Tuesday that it used “dynamic pricing,” meaning changing pricing based on customer background and behavior, or that it used demographic data to inform how it changed prices. But as recently as October the company’s webpage said that it used an AI-pricing platform called Eversight and said that the technology uses “dynamic pricing.” That term has since been removed. A Target spokesperson told the New York Times that it “is not responsible for prices on the Instacart platform.” Instacart uses gig workers to pick and deliver items from supermarkets in thousands of cities in all 50 states. It is valued at $12 billion and has seen shares increase by almost 50 per cent since it floated in 2023.




















