"Using simultaneous tests on the Instacart app, the investigation found that three-quarters of grocery items tested were subject to seemingly "dynamic" prices; a dozen eggs, for instance, from a Washington, D.C. Safeway had five different prices ranging from $3.99 to $4.79, a 20 percent price increase. A box of cornflakes from the same store was priced between $2.99 and $3.69, with a 23 percent increase."
"Groundwork Collaborative, Consumer Reports, and More Perfect Union collaborated on an experiment with 437 shoppers across four U.S. locations, representing several different markets: Seattle, Washington, D.C., North Canton, Ohio, and Saint Paul, Minnesota. For the experiment, shoppers chose the "pickup" rather than "delivery" option. The average difference between prices on items with changing costs was 13 percent, while some items varied up to 23 percent in their price tags."
Instacart implements covert, AI-powered dynamic pricing that presents different prices for the same grocery items to different customers. An experiment with 437 shoppers across Seattle, Washington, D.C., North Canton (Ohio), and Saint Paul (Minnesota) used the "pickup" option and found widespread price variation. About three-quarters of tested items showed dynamic prices, with average item differences of 13 percent and some up to 23 percent. Examples included eggs priced from $3.99 to $4.79 and cereal from $2.99 to $3.69. Whole shopping baskets varied on average 7 percent, potentially increasing annual costs for a family of four by about $1,200.
Read at Truthout
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