Podcast Summary

Podcast: The Indicator from Planet Money
Episode: Can you trust you’re getting the same grocery prices as someone else?
Date: January 7, 2026
Hosts: Waylon Wong, Stephen Basaha
Guests: Lindsay Owens (Groundwork Collaborative), Brian Albrecht (International Center for Law and Economics)

Overview

This episode investigates whether shoppers are truly getting the same prices for groceries as others when using online platforms like Instacart. Hosts Waylon Wong and Stephen Basaha dive into new research showing that not all digital grocery shoppers pay the same price—even when shopping from the same store at the same time. With insights from consumer advocate Lindsay Owens and economist Brian Albrecht, the show explores practices like price testing, price discrimination, and what these trends could mean for the future of grocery shopping.

Key Discussion Points and Insights

1. The Joy (and Data) of Grocery Shopping

• Both hosts begin by expressing their fondness for grocery shopping, setting a personal and light tone.
• Shopping data is passively collected during each transaction (e.g., using loyalty cards).
• Quote:

  “Every purchase…provides the store with data, data that's used to figure out how much to stock and how much to charge.”
  — Stephen Basaha [00:35]

2. What is Instacart and How Are Prices Set?

• Instacart is like DoorDash, but for groceries, allowing at-home ordering for pickup or delivery.
• Prices on Instacart are typically set by the stores themselves, sometimes with added markups.
  — [02:27]

3. Research on Pricing Differences

• New research by Consumer Reports and Groundwork Collaborative (led by Lindsay Owens) analyzed pricing disparities on Instacart.
• Their methodology: Over 400 shoppers ordered identical items from the same physical grocery store using Instacart during a live experiment.
• Finding:

  “75% of the items were offered at different prices to different people.”
  — Lindsay Owens [03:53]

• Example: Corn flakes were $2.99 for one shopper and $3.69 for another—a 23% increase for the same item, same store, same time.
  — [04:06]

4. How Big Are These Price Differences?

• The so-called “Instacart tax” could cost some households up to $1,200 a year.

• Quote:

  “We find that this Instacart tax, if you will, could add up to $1,200…over the course of a year.”
  — Lindsay Owens [04:39]

• Instacart disputed this extrapolation, calling it “outrageous” and based on a short-term, randomized study.
  — [04:47]

5. Customer Reactions and Instacart’s Response

• Research showed shoppers were shocked and felt the pricing was deceptive; some said they wouldn’t use Instacart again.
• Quote:

  “No one told me…that I would be a lab rat and that I might end up paying a heck of a lot more than the person sitting next to me.”
  — Lindsay Owens [05:02]

• After the report, Instacart announced it would end price testing, admitting it “fell short of customer expectations.”
  — [05:16]

6. Understanding the Difference: Price Discrimination vs. Price Testing

• Brian Albrecht (Economist) explains:

  • Price discrimination: Charging different amounts based on habits or demographics—can benefit some shoppers (e.g., seniors, students, loyalty programs).
    • Quote:

      “At the end of the day, what it means is you're going to be able to charge lower prices to some people and higher prices to others.”
      — Brian Albrecht [06:16]

  • Price testing: AB testing of prices to determine what consumers are willing to pay, not based on demographics but usually randomized.
    • Quote:

      “Price testing just means figuring out what's the best price. … [with AB testing] companies put different options in front of customers to see how they respond.”
      — Stephen Basaha and Brian Albrecht [07:03-07:27]

• Brian views price variability as “just the mess of markets every day.”
  — [07:50]

7. Is This Really Normal? The Consumer Advocate's Perspective

• Lindsay Owens disagrees with minimizing the issue, arguing most Americans expect equal pricing in grocery stores.
• Quote:

  “There are very few people other than economists who come down on the no big deal side…this is anything but how grocery shopping has worked in this country for decades.”
  — Lindsay Owens [08:09]

• Owens warns that personalized, algorithm-driven pricing is a step away from standard, transparent pricing—and possibly a return to “haggling,” just digital-style.
  • Quote:

    “We haven't priced in this way really since we stopped haggling. … if the plan is for companies to sort of reinstate person level pricing, my guess is most Americans would not be okay with that and policymakers will have to move swiftly…”
    — Lindsay Owens [08:39]

8. Will Personalized Pricing Be the New Normal?

• Hosts imagine a future where consumers “haggle” with algorithms—removing items from carts or waiting for digital coupons.
• Instacart claims it has “no plans to base prices on individual shopping habits.”
  — [09:31]

Notable Quotes and Memorable Moments

• “A box of corn flakes was $2.99 for one shopper and $3.69 for another. That's a 23% jump from the same store.”
  — Waylon Wong [04:06]
• “75% of the items were offered at different prices to different people.”
  — Lindsay Owens [03:53]
• “We find that this Instacart tax, if you will, could add up to $1,200 for household over the course of a year.”
  — Lindsay Owens [04:39]
• “No one told me that if I signed on to purchase my groceries in Instacart that I would be a lab rat and that I might end up paying a heck of a lot more than the person sitting next to me.”
  — Lindsay Owens [05:02]
• “There are very few people other than economists who come down on the no big deal side… this is anything but how grocery shopping has worked in this country for decades.”
  — Lindsay Owens [08:09]
• “It's like a return to haggling… but instead of haggling with your words, it's based on your actions and your shopping habits.”
  — Stephen Basaha [09:01]
• “Imagine… taking my eggs in and out of the online shopping cart, playing hard to get so it would give me a lower price.”
  — Waylon Wong [09:09]

Important Timestamps

• [02:27] – How Instacart sets prices and the role of data
• [03:35] – Research methodology and price-testing experiment summary
• [03:53] – Key finding: 75% of items priced differently
• [04:39] – The potential annual cost for consumers (“Instacart tax”)
• [05:16] – Instacart ends price testing after report
• [06:05] – Distinguishing price discrimination from price testing
• [07:03] – Brian Albrecht explains AB testing and price testing
• [08:09] – Consumer advocate response: this isn’t “normal” grocery shopping
• [09:01-09:16] – The future: digital haggling and algorithm-driven pricing

Conclusion

The episode raises critical questions about fairness and transparency in online shopping. Pricing on platforms like Instacart isn't always what customers expect—even among people buying the same groceries from the same store. While some economists dismiss this as typical market dynamics, consumer advocates warn it represents a new and less transparent era in shopping, one that might force policymakers to respond. For now, Instacart says it’s back to standard pricing, but as technology evolves, so could the way we all shop—and what we pay.