Instacart Says It Is Pulling the Plug on Its AI-Powered Price Tests [View all]

Source: Gizmodo

Instacart is scrapping its price tests after facing huge blowback from customers.

The grocery delivery service announced Monday that it is ending its item price-testing program following an investigative report that found customers were being charged different prices for the same products, even when the items were ordered at the same time. As users have become more aware of encroaching surveillance pricing, public reaction against Instacart has been swift and attracted the attention of regulators.

The backlash was sparked by a report earlier this month from Consumer Reports, Groundwork Collaborative, and More Perfect Union. The investigation found that Instacart charged some customers nearly 25% more than others for the same products bought at the same stores. Those price differences were allegedly tied to the company’s Eversight pricing tool, which Instacart describes as an “AI-powered pricing and promotions platform.”

The report outlined findings from an experiment conducted in September, in which 437 shoppers across several cities added the same items to their Instacart carts from the same stores. On average, shoppers saw a 13% price difference for the same items, with some gaps as high as 23%.

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Read more: https://gizmodo.com/instacart-says-it-is-pulling-the-plug-on-its-ai-powered-price-tests-2000702649