Study Reveals Instacart’s Variable Pricing on Identical Grocery Staples in Stores

Recent research highlights significant variability in pricing for identical grocery items on Instacart, raising concerns about transparency. The study discovered that customers at the same stores often see different prices for the same products, a practice termed “dynamic pricing.” This is particularly evident at popular retailers like Target and Safeway.

Key Findings from the Study

• A customer in North Canton, Ohio, paid $2.99 for Skippy Creamy Peanut Butter, while others paid up to $3.59 for the same item on the same day.
• At a Safeway in Seattle, prices for Oscar Mayer Deli Turkey ranged from $3.99 to $4.89, resulting in a 23% difference.
• About 75% of grocery items analyzed had different prices on Instacart.

Survey Details

The research conducted by Groundwork Collaborative and Consumer Reports involved 437 shoppers placing orders via the Instacart app for in-store pickup across multiple cities. The findings showcased the prevalence of uneven pricing for essential goods, a trend increasingly likened to practices seen in ride-sharing services.

Implications of Variable Pricing

Groundwork Collaborative warned that Instacart’s pricing strategy could lead shoppers to spend an additional $1,200 annually on their grocery bills. Despite the lack of evidence tying pricing directly to individual consumer behavior, there is speculation that algorithms may consider demographic factors.

Instacart’s Response

In response to these findings, Instacart claimed that its price adjustments are not based on personal shopper data. The company maintains that its “tests” are simply aimed at understanding consumer preferences better. Retailers use pricing trials to gauge which items attract price sensitivity among customers.

Concerns from Retail Partners

• Target stated it is not responsible for prices set on the Instacart platform.
• Safeway’s parent company, Albertsons, has not publicly commented on the pricing practices.
• Stew Leonard’s maintains a transparent pricing policy and has not adopted variable pricing through Instacart.

Industry Perspective

Industry experts criticize the partnership between retailers and Instacart, citing a lack of visibility into customer interactions. This raises questions about customer ownership and pricing fairness.

Technology Behind Pricing Changes

The pricing variability is attributed to Eversight, a software company acquired by Instacart in 2022. Instacart’s CEO, Fidji Simo, noted that this technology aids retailers in adjusting prices based on consumer sensitivity.

The research published recently underscores a growing concern over pricing fairness in online grocery shopping, especially amid increasing food costs. As inflation pressures consumers, the need for clear pricing practices becomes more critical.