A recent collaborative investigation by Consumer Reports, Groundwork Collaborative and More Perfect Union found that Instacart shoppers were being shown different prices for the exact same grocery items from the same stores. Researchers say the pricing experiments led to both higher and lower prices across users, but the effect often meant some people paid noticeably more than others without realizing it. The findings have sparked renewed concerns about algorithmic pricing and transparency in online grocery platforms.
How the Pricing Experiment Worked
The study enrolled 437 real shoppers across four US cities, asking each participant to add an identical set of grocery items to their Instacart cart from the same store locations. By comparing what each shopper saw, investigators discovered that nearly three-quarters of the products appeared at multiple price points, sometimes showing up to five different prices for a single item. On average, the gap between the highest and lowest price for a given product was around 13 percent, with some individual items seeing spreads as large as 23 percent.
Because all test shoppers used the same store and item list, the differences could not be explained by location, inventory, or store choice. Instead, they appeared to stem from experimentation inside the platform itself. While some users benefited from lower prices in these tests, others effectively subsidized the experiment by being shown higher price points for the same goods.
Instacart’s Defense: Retailer Tests, Not Dynamic Pricing
In response, Instacart argued that only a small subset of about 10 retail partners that already mark up prices were involved in these tests, comparing the practice to long-standing in-store price experiments. According to the company, the trials were short-term, randomized, and not driven by real-time supply-and-demand fluctuations. Instacart also insisted that no personal demographic data—such as income, race, or age—was used to decide who saw which price.
The company further claimed that the experiments were meant to help retailers understand consumer preferences and keep “essential items affordable” over the long run. Still, critics point out that shoppers were not clearly told they might be part of a pricing test, and that higher prices in the name of “learning” look very different when household budgets are already stretched.
Retailer Reactions and Target’s Exit
Much of the testing reportedly centered on orders from Safeway and Target, two large chains that consumers commonly use on Instacart. While both chains saw similar patterns of price variation in the study, Target publicly distanced itself by saying it is not affiliated with Instacart and does not control prices on the platform. Instacart later stated that it has stopped running pricing experiments on Target orders and is “evaluating different approaches” to cover operating costs.
This back-and-forth highlights a core tension of app-based grocery services: shoppers often assume they’re paying store prices plus fees, while in reality pricing can reflect markups, experiments, and margin strategies that sit between the retailer and the platform. That gap in expectations is precisely what makes algorithmic price testing so controversial.
Instacart’s Public Response and Affordability Claims
To address the backlash, Instacart published a public statement portraying the tests as part of a broader effort to keep groceries affordable. The company argued that understanding how customers respond to different price points can ultimately help retailers lower prices on key items and improve the overall value of the service. It framed itself as a partner to both stores and consumers, emphasizing commitments to transparency and cost control.
However, the investigation’s findings suggest that, at least in the short term, some users were effectively paying more for identical items without any clear notice or benefit. Consumer advocates worry that without strong disclosure rules and oversight, experimental pricing can quietly erode trust—particularly when it affects essentials like food rather than optional luxuries.
What Shoppers Can Do Right Now
- Periodically compare Instacart prices with in-store or other apps for your most common items.
- Check your receipts over time to see if staples fluctuate in unexpected ways.
- Consider alternative services or direct store pickup if pricing seems inconsistent.
- Use loyalty programs or store apps alongside Instacart to understand “true” base prices.
- Contact customer support when you notice large unexplained jumps on specific items.
- Stay informed about platform policy updates around pricing and transparency.
The study shows how invisible experiments can change what you pay, even when you and your neighbor are shopping from the same virtual aisle. As grocery platforms lean more heavily on algorithms and testing, the debate over fairness, consent, and disclosure will only intensify. For now, anyone relying on Instacart may want to treat listed prices as something to double-check rather than blindly trust—especially on everyday essentials that quietly add up.
