Instacart Ends Dynamic AI Pricing Experiment After Facing Criticism

Maplebear Inc., the operator of Instacart, has announced it will discontinue a controversial artificial intelligence-driven experiment that displayed varying product prices to different consumers.

In a blog post today, the company stated it will no longer allow retailers to use its Eversight technology—an AI-powered tool previously used for dynamic pricing tests. This move follows widespread scrutiny and criticism from consumer advocates and U.S. lawmakers over concerns about price fairness and transparency.

Instacart acquired Eversight in 2022 for $59 million. The platform enabled retailers to run pricing experiments to analyze how shoppers responded to changes in product costs. At the time of acquisition, Instacart emphasized plans to leverage the technology to boost sales and revenue growth for online grocery partners while delivering "the best deals" to customers.

"We recognize that testing with a small group of retail partners led to instances where the same item at the same store was shown at different prices, which did not meet our standards or customer expectations," the company acknowledged. "At a time when households are closely managing grocery budgets, these tests created concern and caused some users to question the prices they saw on Instacart. That’s unacceptable—especially for a company built on trust, transparency, and value."

The decision comes after a recent study by Consumer Reports revealed that Instacart's algorithmic pricing system resulted in some users paying significantly more than others for identical items from the same store. The investigation found price discrepancies of approximately 7% for identical shopping baskets, potentially leading certain customers to spend an extra $1,000 annually.

Instacart is an online grocery delivery service that enables users to order food and household essentials via its website or mobile app from local retailers. Initially, the company maintained that individual retailers were responsible for the prices displayed to consumers. In its latest statement, it reiterated this position while denying that the technology supported “dynamic pricing” or “price gouging.” It also clarified that the tests never relied on personal, demographic, or individual user data.

Nonetheless, the practice attracted significant regulatory attention. Just last week, the Federal Trade Commission issued a civil investigative demand to Instacart regarding its pricing mechanisms.

This isn't the first controversy surrounding the company. In a separate case finalized last week, the FTC ordered Instacart to pay $60 million in customer refunds due to deceptive marketing practices related to its “Satisfaction Guarantee” promotions.