Instacart uses AI to charge different prices for the same item, sometimes up to 20% more for different shoppers, according to a new report. According to Consumer Reports and Groundwork Collaborative, the online grocery delivery service displayed different prices on identical household staples at stores including Albertsons, Costco, Kroger, Safeway and Target. The organizations said customers are unknowingly part of widespread AI-enabled experiments.
How AI Price Testing Works
The report found that Instacart uses AI to gauge how price sensitive customers are. This means testing how much stores can charge before shoppers decide not to buy an item. This approach differs from dynamic pricing, where prices change based on supply and demand.
An accidental email exchange between Instacart and Costco confirmed this motive. Costco sent the message to Consumer Reports after the organization asked for comment on its findings.
Price Differences on Common Items
The study asked 437 participants to buy identical items on the service. Researchers also compared online prices to in-store costs. Every volunteer who participated faced algorithmic price experiments.
A dozen eggs at a single Safeway location in Washington, DC, ranged from $3.99 to $4.79 on Instacart. A box of Safeway Corn Flakes showed a 23% price swing. The lowest price was $2.99 while the highest reached $3.69.
Impact on Shoppers and Company Response
Shoppers who depend on Instacart could face a cost swing of about $1,200 per year because of this AI technology. The finding comes as Americans feel the pinch of higher grocery costs. Prices are climbing because of tariffs, immigration policies and extreme weather affecting food supply.
Instacart told CNN that each retailer’s pricing policy appears on their storefront. The company said only 10 retail partners conduct these tests. These partners already apply markups to their products. An Instacart spokesperson described the tests as limited, short-term and randomized. The company said the tests help retailers decide which essential items to keep affordable.
Instacart was chosen for this investigation because it is the dominant e-commerce grocery service. The platform processed more than 250 million orders in the first three quarters of 2025.
