Instacart Study Reveals Variable Pricing for Identical Items
A comprehensive investigation has uncovered concerning pricing practices by Instacart, the prominent online grocery delivery platform, revealing that customers are being charged different amounts for identical products from the same stores.
The study, conducted by Groundwork Collaborative, Consumer Reports, and More Perfect Union, examined pricing patterns across 437 shoppers in four major cities. The research focused primarily on Safeway and Target stores to assess how the platform manages its pricing structure.
Significant Price Variations Documented
The investigation revealed that nearly 75 percent of grocery items tested were offered at multiple price points simultaneously. In some instances, researchers documented as many as five different prices for the same product in the same store at the same time.
Notable examples include Lucerne brand eggs at a Washington D.C. Safeway store, priced at $3.99, $4.28, $4.59, $4.69, and $4.79 for the same dozen-egg package. Similarly, Clif Chocolate Chip Energy bars showed price variations of $19.43, $19.99, and $21.99 for a 10-bar box at a Seattle Safeway location.
The research established that the average price difference between lowest and highest charges was 13 percent, with some extreme cases showing variations exceeding 20 percent. A box of Signature SELECT Corn Flakes demonstrated a 23 percent price difference, ranging from $2.99 to $3.69.
Impact on Consumer Spending
The pricing variations significantly affected complete shopping baskets, with an average impact of approximately seven percent on total costs. At a Target store in North Canton, Ohio, identical grocery baskets were priced at $84.43, $84.81, $84.92, $87.91, and $90.47.
According to the study's calculations, a seven percent annual difference in basket totals could result in additional costs of approximately $1,200 for consumers over a 12-month period.
Platform Response and Explanation
Instacart addressed the findings through a detailed blog post, clarifying that these practices do not constitute "dynamic pricing" and that costs remain static rather than changing in real-time based on supply and demand factors.
The company explained that a limited number of retail partners, specifically 10 U.S. retailers who already apply markups, utilize Instacart's Eversight technology for conducting brief online pricing experiments. These tests are designed to help retail partners understand consumer price sensitivity and make informed decisions about sustainable pricing strategies.
"These short-term, randomized tests help retail partners understand category-level price sensitivity so they can sustainably invest in lower prices where consumers care most," the platform stated. The company emphasized that these tests are not intended to increase average markups set by retail partners.
Market Transparency Concerns
The study's authors expressed concerns about the broader implications of such pricing practices on market transparency and consumer trust. They argued that when prices lack transparency, consumers cannot effectively comparison-shop, and unpredictable pricing prevents proper budgeting.
Instacart has committed to maintaining focus on affordability and quality, stating intentions to expand same-as-in-store pricing, increase access to savings, and provide clearer information about pricing mechanisms.
The investigation highlights ongoing questions about pricing transparency in digital commerce platforms and their impact on consumer spending patterns in the modern retail environment.