Instacart Halts Its Debated Pricing Trials

FTC Scrutiny Over Variable Pricing

Instacart has decided to cease its practice of testing different prices on its platform. This decision follows the release of a study earlier in the month that unveiled experimental pricing, which resulted in certain consumers paying more than others. Additionally, the Federal Trade Commission announced last week its intention to look into the operations of this grocery delivery service.

A representative from Instacart stated to Engadget that, starting immediately, all experiments involving item pricing have been discontinued on their platform. Consequently, retailers are now unable to employ Eversight's technology for price testing through Instacart. This spokesperson also criticized misconceptions and spread of wrong information, clarifying these pricing experiments did not involve dynamic pricing or employ any data concerning individual shopper behaviors.

Clarification from Instacart

In a previous blog entry addressing the study's claims, Instacart described its pricing adjustments as 'short-term, randomized A/B testing.' According to the post, such methodologies are 'typical within the grocery sector.' Instacart portrayed these trials as initiatives to 'promote competitive pricing.' They also emphasized that price determination on the platform falls under the jurisdiction of individual retailers showcased within the app.

Future Pricing on the Instacart Platform

It was emphasized by the company that its partners in retail will continue to establish their own pricing within the Instacart platform. These prices might vary based on geographical location, similar to the dynamics in physical store locations. However, Instacart is stepping back from supporting any service aimed at testing item prices.

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