The Brian Lehrer Show Instacart’s AI-aided Pricing Experiments
Dec 23, 2025
Derek Kravitz, a reporter and deputy editor at Consumer Reports, dives into the intriguing world of Instacart's AI-driven pricing experiments. He reveals that 74% of tested products showed significant price variations, raising concerns about profiteering and consumer trust. The discussion explores the ramifications of personalized pricing, particularly for low-income shoppers and SNAP recipients. With tips for consumers to safeguard their wallets, Derek sheds light on the growing prevalence of algorithmic pricing across major retailers and Instacart's strategic pivot to tech solutions.
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Widespread Algorithmic Price Variation
- Consumer Reports found Instacart showed algorithmically altered prices for 74% of tested items.
- Price differences between lowest and highest reached up to 23%, creating meaningful annual cost swings.
Experiments Aim To Boost Retailer Margins
- Instacart markets these experiments as profit generators to increase revenue and margins.
- Derek explains the practices are elaborate A/B tests turbocharged by shopper data and AI.
Instacart Ends Base-Price Experiments
- Instacart announced it will stop experimenting with base item prices after public backlash and regulatory attention.
- The company will still run experiments on promotions and discounts, which remain powerful tools.