Instacart Drops AI Pricing After Shoppers Notice Higher Costs

Instacart has built its reputation on convenience, helping millions of families get groceries delivered without setting foot in a store. But over the past year, many shoppers began noticing something unsettling at checkout: the same items appearing at different prices, sometimes within minutes or between accounts.

Those concerns recently reached a tipping point. After mounting criticism, independent research, and growing regulatory scrutiny, Instacart announced it is ending item price tests on its platform, effectively pulling back from an AI-driven pricing experiment that left customers questioning whether they were paying more than others for the same groceries.

The decision follows weeks of public backlash and renewed debate over transparency in online grocery pricing.

What Instacart’s AI Pricing Test Did

Instacart confirmed that it had allowed a limited number of retail partners to run item price tests using Eversight, a pricing technology that enables retailers to experiment with different prices for the same products. These tests meant two shoppers could see different prices for identical items from the same store at the same time.

An independent investigation by Groundwork Collaborative, Consumer Reports, and More Perfect Union examined 437 shoppers across four U.S. cities. The study found that 74% of grocery items tested were offered at multiple price points, with some shoppers seeing prices up to 23% higher than others for the exact same item.

Researchers also found that total grocery basket prices varied by an average of 7%, meaning identical carts could cost families significantly different amounts. Based on typical grocery spending, the report estimated these differences could add up to about $1,200 per year for some households.

Why Shoppers and Regulators Pushed Back

The backlash wasn’t just about higher prices, but about trust. Critics said shoppers were never clearly informed they might be part of pricing experiments, making it harder to budget or compare prices at a time when grocery costs are already a major concern.

Those complaints quickly drew regulatory attention. In December, Reuters reported that the Federal Trade Commission opened a probe into Instacart’s AI pricing tools, seeking details on how the technology was used and whether consumers were treated unfairly. Instacart shares fell following the report, reflecting investor concern over the scrutiny.

The investigation followed other regulatory action against the company. In a report by CNBC, Instacart recently agreed to pay $60 million to settle separate FTC claims that it misled customers through deceptive subscription and fee practices. While Instacart has said retailers—not the platform—set item prices, consumer advocates argue that offering opaque pricing tools still places responsibility on the company to ensure fairness and transparency.

What Ending AI Pricing Means Going Forward

In a blog post, Instacart said it is ending all item price tests effective immediately and will no longer support Eversight-based pricing experiments on its platform. The company promised that shoppers buying the same items from the same store at the same time will now see the same prices.

Instacart acknowledged that the tests “missed the mark” for some customers, particularly during a period when families are working hard to stretch grocery budgets. The company said it is now focusing on price clarity, better disclosure of retailer markups, and encouraging in-store and online price parity.

The episode highlights a broader tension in modern retail: how far companies should go in using AI and pricing tools when consumers expect fairness and predictability for essential goods. For Instacart, ending the pricing tests may be a step toward restoring confidence, but it also signals that shoppers and regulators are paying closer attention than ever to how prices are set in the digital grocery aisle.