A recent study by Consumer Reports, conducted in collaboration with Groundwork Collaborative, has revealed that Instacart has been implementing AI-driven dynamic pricing experiments at partner retail locations like Kroger, Albertsons, Costco, and Safeway. The findings suggest that some consumers are paying up to 23% more for identical products compared to others on the platform.
The experiments utilize Eversight, a Software as a Service (SaaS) product, which aims to help grocers enhance revenue and optimize pricing strategies. While Instacart acknowledges that some shoppers might face slightly elevated prices, the observed 23% price hikes raise concerns about transparency and fairness.
Instacart defended its practices by likening them to traditional retail price testing in physical stores. The company clarified that a select group of its U.S. retail partners, who already apply markups, employ the Eversight technology for online pricing trials.
Dynamic pricing, a strategy increasingly adopted by e-commerce platforms, has come under scrutiny for potential consumer disparities. The practice has also been linked to other instances, such as Amazon’s dynamic pricing allegedly impacting school districts’ procurement costs for basic supplies.
Source: TechCrunch
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