Instacart Says It Is Pulling the Plug on Its AI-Powered Price Tests

[highplainsdem]

Source: Gizmodo

Instacart is scrapping its price tests after facing huge blowback from customers.

The grocery delivery service announced Monday that it is ending its item price-testing program following an investigative report that found customers were being charged different prices for the same products, even when the items were ordered at the same time. As users have become more aware of encroaching surveillance pricing, public reaction against Instacart has been swift and attracted the attention of regulators.

The backlash was sparked by a report earlier this month from Consumer Reports, Groundwork Collaborative, and More Perfect Union. The investigation found that Instacart charged some customers nearly 25% more than others for the same products bought at the same stores. Those price differences were allegedly tied to the company’s Eversight pricing tool, which Instacart describes as an “AI-powered pricing and promotions platform.”

The report outlined findings from an experiment conducted in September, in which 437 shoppers across several cities added the same items to their Instacart carts from the same stores. On average, shoppers saw a 13% price difference for the same items, with some gaps as high as 23%.

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Read more: https://gizmodo.com/instacart-says-it-is-pulling-the-plug-on-its-ai-powered-price-tests-2000702649

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The backlash against harm done by AI companies can work.

[Hugin]

1. It'll come back in a few months with a different mask on...

Again and again until nobody’s looking. Then, when it is finally brought to light after that, the refrain will be it’s what was always there.

This is why regulations are a good thing and functioning democracies have them.

[SheltieLover]

3. Exactly

[OnlinePoker]

5. Reminds me of car subscriptions

When there was a backlash against BMW (?) for their heated seats subscription requirements, they said it was only an idea and not based in reality. Now, a few years on, these have become ubiquitous.

[Raven123]

7. Had to look it up, but apparently BMW gave in on that one

https://www.edmunds.com/car-news/bmw-relents-on-heated-seat-subscription.html

[BlueWaveNeverEnd]

2. Wow..

[Aussie105]

4. No surprise there.

Easy to look up socio-economic data based on delivery addresses, and present a price list for items especially tailored to specific profiles.

Happens for walk in customers in shops too.

Same item priced differently in shops, depending where the shop is located, in a poorer suburb or an affluent suburb.

Quality of perishables like fruit and veg and meat quality varies too, with better offerings in affluent suburbs and higher prices.

Just businesses 'being smart!' It's not a new, AI related thing.

[ToxMarz]

6. Next they probably require signed NDA's before you are allowed the see the price you are paying

with the customary $10 billion dollars in damages if you violate.

[IbogaProject]

8. FedEx is using that voodoo

A shipment that should be just over or under $1,000 is getting quotes from them 6, 7, 8 times as large. Then if you try again you get a reasonable quote.

[Marcuse]

9. I'm sure the FTC will prosecute to the fullest extent of the law.

[BadgerKid]

10. Sounds like a job for a VPN

To try to bypass price ambushing.

[Xolodno]

11. I think a lot of companies are going to realize the AI they contracted for....

...is a shit taco.

Vendors have been over promising and under delivering.

[wolfie001]

12. Criminal racket enabled by Diaper Don the Criminal-In-Chief

Corps.e know they can pull this shit off today with zero government oversight. Just donate to the orange shit-face.