Instacart’s AI Technology Increasing Prices Up to 20% for Same Items, New Study Reveals
By Jordan Valinsky, CNN — December 14, 2025
A recent investigation has uncovered that Instacart, a leading online grocery delivery service, is using artificial intelligence (AI) to charge customers different prices for the exact same items — with variations reaching as high as 20%. The findings, published by Consumer Reports in collaboration with Groundwork Collaborative, raise concerns about pricing transparency and the impact on consumers’ grocery budgets.
Price Variations Across Major Retailers
The report reveals that Instacart displayed inconsistent prices for household staples across well-known grocery stores, including Albertsons, Costco, Kroger, Safeway, and Target. Participants in the study encountered varying costs for identical products depending on factors identified by the AI system, which assesses shoppers’ sensitivity to price changes.
For example, a dozen eggs at a Safeway location in Washington, DC, appeared on Instacart with prices ranging from $3.99 up to $4.79. Similarly, Safeway’s private label Corn Flakes showed price differences of up to 23%, varying between $2.99 and $3.69. These disparities illustrate the algorithm’s ability to adjust prices in real-time based on predicted consumer behavior.
Understanding AI-Driven Pricing Experiments
Consumer Reports described the process not as standard dynamic pricing—where supply and demand dictate immediate cost shifts—but as AI-fueled experiments designed to determine the maximum price shoppers are willing to pay before opting out of a purchase. According to leaked communications between Instacart and Costco, accidentally shared with Consumer Reports, the motive behind these tests is to better understand pricing thresholds and optimize retailers’ markups.
Such practices are being carried out without shoppers’ awareness, effectively making consumers unwitting participants in ongoing pricing trials.
Impact on American Families and Market Transparency
The organizations behind the report caution that AI-enabled pricing experiments erode price transparency, a cornerstone of fair consumer markets. Without stable and predictable prices, customers find it difficult to comparison shop or create accurate household budgets.
“This corporate practice ultimately raises prices for American families,” the report states. It warns that the algorithm’s unpredictability could lead to an annual additional cost of roughly $1,200 for frequent Instacart users.
Response from Instacart
In response to the findings, Instacart emphasized that pricing policies are retailer-driven and clearly displayed on their platform, including any markups applied to online orders to account for labor and delivery costs. The company also said only a limited number of retail partners—around 10—engage in short-term, randomized price testing through the service.
“Just as retailers have long tested prices in their physical stores to better understand consumer preferences, a subset of retail partners do the same online via Instacart,” a company spokesperson said. The spokesperson added that such tests assist retailers in deciding which essential products to keep affordable.
Context Amid Rising Grocery Costs
This report emerges at a time when grocery prices are already under pressure due to various factors such as tariffs, immigration policies, and climate-related disruptions affecting food supply. Instacart, which processed over 250 million orders in the first three quarters of 2025 alone, remains the dominant player in grocery e-commerce, making the implications of its pricing practices particularly significant.
Study Methodology
The study enlisted 437 participants who were instructed to purchase identical grocery items via Instacart while also comparing those prices to in-store costs. Every participant experienced some level of algorithmic price variation, underscoring the widespread nature of these AI-driven pricing tactics across the platform.
Looking Ahead
As AI increasingly shapes retail experiences, the investigation calls for greater transparency in how pricing algorithms are used and suggests that consumers deserve clear information about when and how prices may be adjusted. The findings underscore broader concerns about the balance between innovative technology use and fair market practices in the growing online grocery sector.
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