Instacart is ending its controversial price tests
Instacart has officially ended its controversial AI-driven price testing program, which charged different customers varying amounts for identical items from the same store, following widespread backlash and media scrutiny. The decision, announced on December 22, 2025, ensures uniform pricing across users shopping the same products simultaneously, restoring trust amid grocery inflation concerns. Retailers retain control over base prices, but Instacart disables Eversight tech that enabled dynamic experiments.
The Controversy Unfolded
Reports from Consumer Reports and Groundwork Collaborative revealed shoppers paying up to 23% more—averaging 13% variances—for groceries like those at Safeway or Target, with one study estimating $1,200 extra annual costs for affected families. Instacart acquired Eversight in 2022 to let 10 select partners run randomized tests, mimicking in-store pricing trials to optimize affordability and revenue, but critics slammed it as hidden gouging during economic hardship. The platform insisted tests avoided personal data, yet 75% of items showed fluctuations, fueling calls to "close the lab."
How Tests Worked
Eversight's AI randomized prices for small user groups, tracking cart abandonment to gauge elasticity—e.g., a Seattle Safeway basket ranged $114 to $124 on September 4, 2025. Retailers aimed for 3% revenue gains without demand spikes, but shoppers unknowingly became subjects, seeing discrepancies across cities like those in volunteer comparisons. Instacart clarified Target used public data plus fees, ending those too.
Customer and Expert Backlash
Families stretching budgets decried it as unfair experimentation, with executives like Lindsey Owens arguing shoppers aren't "guinea pigs." Coverage in NYT, CNN, and LA Times amplified outrage, noting digital pricing's erosion of fixed costs. Instacart responded with transparency pledges, displaying retailer markup policies upfront.
What Changes Now
Effective immediately, all users see identical prices for the same items at the same store-time, eliminating test-induced variances. Instacart pushes partners toward in-store/online parity, removing markups where feasible, while service fees persist. This aligns with affordability focus, though store-by-store pricing differences remain.
Broader Implications
The reversal highlights risks of opaque AI pricing in e-commerce, pressuring rivals like DoorDash to audit practices. Regulators may eye similar models, as economists warn of inflation acceleration. Shoppers gain predictability, but watch for evolved transparency tools.
Instacart terminates its divisive AI-powered price testing initiative, which dynamically inflated costs for identical groceries across users, bowing to consumer fury and investigative reports. The program, powered by Eversight software, ends immediately as of December 22, 2025, guaranteeing consistent pricing for all shoppers on the same items from one store at any moment.
Backstory of the Scandal
Exposés from Consumer Reports and Groundwork Collaborative exposed shoppers facing 13-23% markups—translating to $1,200 yearly hits for heavy users—on staples at chains like Safeway, Target, and Costco, with baskets varying $10+ in single days. Acquired in 2022, Eversight let a handful of retailers run secret A/B tests on real customers to tweak elasticity, but backlash branded it exploitative amid soaring food prices, dominating headlines in NYT, CNN, and LA Times.
Testing Mechanics Revealed
The system randomized surcharges for tiny cohorts, monitoring drop-offs to maximize revenue without backlash—e.g., a $114 Seattle cart ballooned to $124 elsewhere. Instacart maintained no personal data fueled hikes, framing it as standard retail science, yet 75% of tested SKUs fluctuated wildly, eroding trust in app transparency.
Public and Media Outcry
Budget-strapped families and advocates decried the "human lab rats" approach, with calls to dismantle the feature surging online. Instacart's defenses—citing non-dynamic, retailer-led trials—faltered against evidence of unchecked AI, prompting swift capitulation over reputational damage.
Immediate Reforms
Shoppers now encounter uniform rates across sessions, with Instacart axing Eversight entirely and mandating parity between in-app and store prices where possible. Service fees endure, but upfront disclosures on retailer policies aim to rebuild faith, vetted by third-party audits.
Lasting Ramifications
This retreat spotlights perils of covert dynamic pricing in delivery apps, inviting scrutiny on DoorDash and Uber Eats analogs. It underscores demands for ethical AI in commerce, potentially spurring FTC guidelines, while Instacart refocuses on affordability to retain 15 million users.
