The Indicator from Planet Money

Can you trust you're getting the same grocery prices as someone else?

January 7, 2026

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  • Research involving over 400 shoppers on Instacart found that 75% of items were offered at different prices to different people ordering from the same physical store, leading to a potential annual cost increase of up to $1,200 for some households. 
  • Instacart ended its price testing immediately after the report's publication, stating that shoppers should not have to question the prices they see on their platform, although they denied targeting customers based on demographics. 
  • Economists view price variation as standard market practice (price testing or price discrimination, which can offer lower prices to certain groups), while consumer advocates argue that person-level pricing based on data is a deceptive shift away from decades of standard grocery pricing. 

Segments

Grocery Data Collection Context
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(00:00:12)
  • Key Takeaway: Grocery purchases generate data used by stores for stocking and pricing decisions.
  • Summary: Grocery shopping generates data from loyalty card swipes and purchases, informing stores about consumer preferences and inventory needs. This data gathering is often passive, involving weighing produce or scanning cards. Recently, some grocers have used this data to charge different customers varying prices for the same items.
Instacart Price Variation Research
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(00:00:57)
  • Key Takeaway: A study found 75% of items on Instacart showed different prices for shoppers ordering from the same store.
  • Summary: Researchers conducted an experiment where over 400 shoppers placed the exact same items in their Instacart carts from the same physical store. Across the sample, 75% of items were priced differently for different people, such as a box of cornflakes varying by 23% ($2.99 vs $3.69). Instacart claimed this was not demographic targeting, but rather random assignment to different pricing groups.
Instacart Response and Ending Testing
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(00:04:31)
  • Key Takeaway: Instacart ended immediate price testing after facing criticism over deceptive pricing practices.
  • Summary: Instacart stated it did not let stores target customers based on demographics, a finding the researchers did not contradict. The research estimated this ‘Instacart tax’ could cost a household $1,200 annually, a figure Instacart called outrageous. Following the report, Instacart announced it was ending price testing immediately, acknowledging it fell short of customer expectations.
Price Discrimination vs. Price Testing
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(00:05:50)
  • Key Takeaway: Price discrimination involves charging different amounts based on habits, while price testing (A-B testing) determines optimal pricing by showing different options randomly.
  • Summary: Price discrimination, which involves charging different amounts based on habits or demographics (like senior discounts), can potentially benefit shoppers by offering lower prices to some. Price testing, or A-B testing, is used by companies to see how many consumers they lose or gain by raising or lowering prices. Brian Albrecht noted that price movement is common via sales and coupons, viewing the Instacart situation as part of the normal market process.
Future of Personalized Pricing
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(00:08:17)
  • Key Takeaway: Consumer advocates fear this trend signals a return to person-level pricing reminiscent of haggling, requiring policy intervention.
  • Summary: Lindsay Owens argued that this practice is unlike how grocery shopping has worked for decades, representing a shift toward personalized pricing based on data beyond standard coupons. This move toward person-level pricing is compared to reinstating haggling, but based on digital actions and shopping habits. Policymakers may need to act swiftly if companies intend to fully reinstate this practice.