Overview
- Reuters reported that the FTC issued a civil investigative demand to Instacart regarding its Eversight pricing software, with the agency noting it was disturbed by reported practices while emphasizing that an inquiry does not establish wrongdoing.
- Instacart shares fell about 10% in after-hours trading following the report, with additional declines in pre-market trading on Thursday.
- The advocacy-led study involving 437 simultaneous shops across four U.S. cities found average basket costs differed by about 7%, with single-item prices varying by up to 23% for the same products at the same stores.
- Instacart says price tests are randomized, used by roughly 10 U.S. retail partners that already apply markups, and controlled by retailers, adding it has pushed for closer alignment between online and in-store prices.
- Eversight, acquired by Instacart in 2022, is marketed to drive 1–3% revenue growth and a 2–5% margin lift for retailers, with tests reported at chains including Kroger, Albertsons, Costco, Safeway, Target, and Sprouts.