[ CYPHER CODE #593 ]
If prices change by person, inflation is no longer a shared experience.

[ CYPHER CODE #594 ]
The algorithm doesn’t guess what you’ll pay. It learns what you tolerate.

[ CYPHER CODE #595 ]
Convenience platforms don’t compete on price. They compete on how invisible the markup is.

BRIEFING

Grant here. Ever since the pandemic, ordering groceries has pretty much become the norm; however, one can't help but notice that the pricing on apps like Instacart seems to be pretty inconsistent. This isn't by accident; it's a phenomenon known as dynamic pricing, and it's a system where prices become personalized, quietly, invisibly, and without consent. Let’s break it down.

Instacart is now under fire after reports have surfaced accusing the grocery delivery giant of charging different customers different prices for the exact same items, without any clear disclosure. The controversy centers on the previously mentioned "dynamic pricing," which is a practice long associated with airlines and ride-share apps, now creeping into grocery bills.

According to Groundwork, a consumer advocacy group, an analysis of Instacart pricing showed that nearly three-quarters of grocery items surveyed were sold at inconsistent prices depending on the customer. The group estimates that these discrepancies could add up to as much as $1,200 per year in additional grocery costs for some shoppers.

A business news segment amplified the findings, noting that customers were unaware they were being charged different prices for identical products. The report framed the practice as “infuriating,” which is right on the money considering groceries are just as expensive as ever.

Not too surprisingly, Instacart is taking zero accountability and denied that it uses personal customer data to set individualized prices. The company stated that the price variations were part of so-called "retailer-run tests" designed to understand consumer behavior, not Instacart-driven personalization.

Sounds like a bunch of hooey to me...

SOURCE

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No longer a conspiracy theory

Instacart has been caught using Dynamic Pricing

They are accessing personal data of users and then adjusting prices based on that data. If someone can afford to pay more for items, the prices increase

“You may have heard of dynamic pricing. Well now Instacart is accused of using this controversial practice to charge consumers wildly inconsistent prices on the same products.

— This is infuriating. Food delivery service Instacart is being accused of charging different prices to different customers on the same grocery items without them knowing.

Groundwork, it's a consumer advocacy group, Instacart says Instacart's pricing algorithm could lead to shoppers paying an extra $1,200 on groceries annually. Nearly three-quarters of grocery items it surveyed were sold at different price points.

Instacart said the price differences were tests conducted by some retailers to learn what matters most to consumers. It denied using shoppers' personal information to fuel dynamic or customized pricing.”

DEBRIEFING

This entire Instacart scandal isn't necessarily shocking because, honestly, most people already suspected something like this was happening. However, most likely, they brushed it off as convenience always having an "extra price" associated with it and nothing more.

But what's really disturbing here is not just the whole dynamic pricing thing, but more so how quietly it’s being normalized in a space that used to be nonnegotiable. Food, more specifically groceries, was supposed to be the one category where the price was the price.

Instacart claiming that retailers are running pricing tests and that personal data is not being used honestly sounds bogus. Even if it is true, their explanation still sidesteps the real issue. If a platform can infer purchasing power through behavior, location, timing, or past spending, it doesn't need your name or income to know how much to charge you. That's the really alarming part.

NOW YOU KNOW

When food prices become personal, fairness disappears.