Instacart AI pricing under fire: New study claims $1,200 annual cost increase for shoppers

A new report claims that Instacart’s use of artificial intelligence (AI) pricing tools could lead consumers to pay significantly more for their grocery orders. 

The study conducted by advocacy group Groundwork Collaborative, alongside Consumer Reports and More Perfect Union, is blowing the whistle on potential annual cost increases of around $1,200.

The research examined 437 shoppers in Washington, D.C., and other cities across the country and found that approximately 75 percent of grocery items showed price inconsistencies when added to shopping baskets on the app. 

The test group compared prices for identical products from major retailers such as Target, Costco, Albertsons, Kroger, and Safeway. 

For example, a dozen Lucerne eggs had varying price tags at a Safeway location in Washington. The cost variation amounted to a seven percent difference, the report notes.

Instacart’s response

In a statement, the company attributed the price differences to online pricing tests. The company explained that these trials, which are “randomized” and “short-term,” help retail partners gauge category-level price sensitivity and support investments in lower prices where consumers care most.

The grocery delivery and pick-up service emphasizes that prices on its platform do not change in real time or in response to supply and demand. Instacart further clarifies that retailers, not the app, set the prices on the platform.

“We’ll continue to stay laser-focused on making Instacart an affordable, high-quality option. Whether through expanding same-as-in-store pricing, increasing access to savings, or providing clear information about how pricing works, we remain committed to delivering the best, most affordable experience possible to consumers,” the firm says in the blog post.

The study comes as lawmakers consider new regulations surrounding the use of AI in pricing. Senator Ruben Gallego (D-Ariz.) introduced a bill on December 9 aimed at preventing companies from using personal data to set different prices for identical products or services.

Instacart maintains that it does not use personal data to adjust pricing in its tests.

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