Instacart Faces Scrutiny Over AI-Driven Dynamic Pricing Tests on Grocery Items

Instacart is under fire for alleged AI-led price experiments. A new report claims the delivery app is charging some users significantly more. This happens at major partner stores like Kroger and Costco.

CHONGQING, CHINA – APRIL 26: In this photo illustration, the logo of Maplebear Inc., doing business as Instacart, is displayed on a smartphone screen, with the company’s latest stock market chart visible in the background, reflecting recent trading activity and investor sentiment, on April 26, 2025, in Chongqing, China. Instacart is an American grocery delivery and pick-up service that partners with retailers to provide same-day delivery via a mobile app and website platform. (Photo illustration by Cheng Xin/Getty Images)

The findings come from a study by Consumer Reports. Their research suggests the practice may lack transparency. Consumers are reportedly paying up to 23% more for identical products.

How Instacart’s AI Pricing Tests Reportedly Work

The system uses software from a company called Eversight. This is a SaaS product designed for retail pricing. It allows grocers to test different prices online to find the optimal point.

According to Consumer Reports, a small group of Instacart’s retail partners use this technology. The report indicates about 10 U.S. partners are involved. These are partners who already apply markups on the Instacart platform.

Shoppers are essentially placed into different test groups. One group may see a standard price for an item. Another group might see a price that is dramatically higher for the same product from the same store.

Instacart has acknowledged the tests exist. The company referred to a previously released statement. It compared the online tests to traditional price experiments in physical stores.

Broader Impact and the Rise of Algorithmic Pricing

This incident highlights a growing trend in e-commerce. Dynamic pricing, powered by AI, is becoming more common. Companies use vast amounts of data to adjust prices in real-time.

It raises significant questions about fairness and consumer trust. Shoppers may not know they are part of a pricing experiment. The lack of clear disclosure is a central concern for advocates.

Instacart is not alone in facing such allegations. Amazon was recently accused of similar practices affecting school supplies. The online retail giant called that report flawed and misleading.

The long-term effect could be a erosion of shopper confidence. If consumers feel they cannot trust the listed price, they may abandon the platform. This presents a major risk for delivery services relying on frequent, loyal users.

The controversy around Instacart AI dynamic pricing tests spotlights the hidden complexities of modern digital shopping. As algorithms increasingly set prices, the call for transparency and consumer protection grows louder.

Thought you’d like to know

What is dynamic pricing?

Dynamic pricing is a strategy where prices change based on real-time market conditions. Algorithms analyze demand, inventory, and user data. This is common in travel and ride-sharing, and is now expanding to groceries.

How does Instacart’s pricing work?

Instacart’s prices can differ from in-store prices. Retail partners may set markups on items sold through the app. The new report focuses on additional AI tests that create further, variable price differences between app users.

Is this type of pricing legal?

In most cases, dynamic pricing is legal. The primary issue raised by consumer groups is one of transparency. The concern is that shoppers are not adequately informed they are seeing a test price that is not standard.

Which stores are involved in the tests?

The Consumer Reports study mentioned tests at Instacart’s retail partner locations. These include major chains like Kroger, Albertsons, Costco, and Safeway. Instacart stated 10 U.S. retail partners use the Eversight technology for tests.

What has Instacart said about the report?

Instacart referred to a previous statement defending the practice. The company said a small subset of partners use the technology for limited online pricing tests. It compared this to traditional price testing done in physical store aisles.