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A recent research published by Consumer Reports (CR) claims that Instacart has been conducting AI-driven pricing experiments that, in some cases, significantly raise the prices of certain products.
CR and its research partner, Groundwork Collaborative, found that the delivery program was driving these efforts at stores on the platform — such as Kroger, Albertsons, Costco, and Safeway. In some cases, consumers pay 23% more than other consumers for the same products, the report says.
The software included in the trial, Eversight, is a SaaS product itself provides consumers a price list designed to “unlock revenue growth” and use “price solutions that maximize your prices and get the best prices that customers expect.” Instacart reveals on its Eversight website that some shoppers “may see slightly higher prices” than others.
However, as noted earlier, some price increases appear to be slightly higher than “slightly higher.” A 23% price increase is not a real change.
When reached for comment, Instacart sent TechCrunch past release statement the company said “just as retailers have long tested prices in retail stores to understand what resonates with customers, a small group of our retail partners – 10 US retailers that already choose to use markups – used Instacart’s Eversight technology to conduct a small test of online prices.” The company also ran into trouble with its so-called “power pricing,” calling it “experimental AI pricing.” An Instacart spokesperson said: “These tests are not dynamic pricing – prices do not change in real time, including in response to supply and demand.
Dynamic pricing has grown exponentially in recent years, and many of the largest websites are reportedly using it. Someone recent report He said, because of the pricing that Amazon uses, school districts in the US have been paying higher prices for school supplies. Amazon since then called for a report “false and misleading.”
This article has been updated with additional information from Instacart.
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