Online grocery delivery service Instacart utilized AI to assign distinct costs for the same product, up to 20% more for differing patrons, a new document states.
A probe from Consumer Reports and Groundwork Collaborative unveiled Tuesday that Instacart presented varying rates on the identical household essentials sold at recognized establishments, including Albertsons, Costco, Kroger, Safeway, and Target. The statement asserted customers are “unwittingly involved in extensive AI-powered trials.”
“Corporate methods like these boost expenditures for American households. When costs cease to be transparent, purchasers are unable to compare value. When costs are no longer dependable, shoppers cannot appropriately plan their finances,” the groups remarked in the document.
The investigation discovered that Instacart employs AI to assess how “price-sensitive” patrons are, meaning the maximum that grocery outlets can charge for an item before the buyer opts not to procure it. That differs from dynamic pricing, where values instantly fluctuate based on availability and demand.
“That rationale was validated by an email correspondence between Instacart and Costco that was unintentionally forwarded to (Consumer Reports) by Costco after we reached out to the firm for feedback on our discoveries,” the document mentioned. (Costco did not promptly reply to CNN’s inquiry for a statement.)
This finding surfaces as Americans feel the strain of greater grocery expenditures, which are increasing partly due to tariffs, immigration constraints, and severe weather impacting food provision.
Instacart was selected since it’s “by far the leading e-commerce” grocery platform, with beyond 250 million transactions in the initial three quarters of 2025, the organizations relayed.
The study requested 437 individuals to obtain the precise identical good on the service and also juxtapose it with brick-and-mortar store prices. The inquiry ascertained that “every single one of the shopper volunteers who took part in our evaluations was subjected to algorithmic price experiments.”
For instance, a dozen eggs retailed on Instacart at a solitary Safeway outlet in Washington, DC, was priced anywhere from $3.99 to $4.28, $4.59, and $4.79. In a different evaluation, pricing for a package of Safeway’s proprietary Corn Flakes varied 23% between the lowest and highest figures — from $2.99 to $3.69.
In aggregate, patrons relying on Instacart could observe “a cost variation of approximately $1,200 annually” stemming from the AI-driven technology the service employs, the report concluded.
Instacart commented to CNN that every retailer’s pricing structure is shown on their digital storefront on the platform’s application or site so patrons can perceive the divergence between online and in-store rates. (Costs for goods sold on these apps are frequently higher due to labor expenses and supplementary fees.)
“Just as retailers have historically tested prices in their physical shops to better grasp consumer leanings, a small segment of merely 10 retail associates — those already applying markups — do the identical online through Instacart,” a representative stated.
Instacart further noted that the “restricted, short-term, and arbitrary examinations” aid retailers in determining which necessary items to maintain accessible price-wise for patrons.
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