Instacart is ending its controversial price tests
Instacart has announced it will be ending price testing on its platform. This comes after a study published earlier this month revealed pricing experiments that led to some customers seeing higher prices than others and the FTC saying last week it would be investigating the grocery delivery app.
"Effective immediately, Instacart is ending all item price tests on our platform. Retailers will no longer be able to use Eversight technology to run item price tests on Instacart," an Instacart spokesperson shared with Engadget. The blog post called out "misconceptions and misinformation," maintaining that these price experiments were never the result of dynamic pricing and were never based on any personal or behavioral information about shoppers.
In an earlier blog post responding to the study's allegations, Instacart said pricing changes were a "form of short-term, randomized A/B testing." The post referred to this process as "common in the grocery industry" and continued to paint the practice as a way to "invest in lower prices." It also highlighted that Instacart does not set the prices on its platform, which are set by retailers listed on the app.
The company made clear that its retail partners will continue to set their own prices on the platform, which may vary by location just as they do in brick-and-mortar stores, but that Instacart will no longer support any item price testing services.This article originally appeared on Engadget at https://www.engadget.com/big-tech/instacart-is-ending-its-controversial-price-tests-134552152.html?src=rss
