In the News
On any given day, Groundwork's analyses, op-eds, reports, and commentary are featured in leading publications and on the most influential news programs and podcasts.
On any given day, Groundwork's analyses, op-eds, reports, and commentary are featured in leading publications and on the most influential news programs and podcasts.
Instacart shares fell after a report accused the company, also known as Maplebear, of charging different prices for the same items. The stock was down 6% to $43.47 in Wednesday morning trading. Shares are up 5% this year. The report, led by Consumer Reports, progressive think tank Groundwork Collaborative, and progressive media outlet More Perfect Union, said the San Francisco grocery-delivery company displayed several different prices for users who added the same item from the same store at the same time.
A small case study from Groundwork Collaborative and Consumer Reports looked at nearly 200 grocery shoppers in four U.S. cities that went on the app Instacart and shopped for the same products at the same time.
An investigation from Consumer Reports and Groundwork Collaborative revealed Tuesday that Instacart displayed different prices on the same household staples sold at well-known stores, including Albertsons, Costco, Kroger, Safeway and Target. The report said customers are “unknowingly part of widespread AI-enabled experiments.”
On average, that could cost a family of four a swing of $1,200 based on Instacart's prices, the study by Consumer Reports, More Perfect Union, and Groundwork Collaborative, a Washington, DC-based think tank, found.
“It’s representative of Trump policy, which seems to be based on whomever was in his ear last and not part of a coherent strategy,” says Alex Jacquez, who was special assistant to President Biden for economic development and industrial strategy at the National Economic Council.”
The study, released Tuesday by Groundwork Collaborative, a progressive advocacy group, Consumer Reports and news organization More Perfect Union, enlisted 437 shoppers across four cities to add the same items to their carts within the Instacart app from the same store.
The findings are the latest example of how the notion of a single price is breaking down in the digital age, a trend economists say could be pushing up some prices.
“Corporate practices like these increase prices for American families,” the Groundwork report states. “When prices are no longer predictable, shoppers can’t properly budget.” It adds: “Most shoppers are unaware that they are the guinea pigs in Instacart’s experiments.”
A months-long investigation by the nonprofit organizations Consumer Reports and Groundwork Collaborative found that identical grocery items on Instacart could differ in price by as much as 23% from one customer to the next.
A new investigation from Groundwork Collaborative, Consumer Reports, and More Perfect Union reveals that Instacart, enabled by the artificial intelligence pricing software Eversight, is running large-scale, hidden price experiments on unsuspecting customers.