The popularity of food and grocery delivery services like Uber Eats and DoorDash has skyrocketed in recent years, with online grocery shopping in the U.S. expected to reach 148.4 million in 2022. Instacart leads the market with a 68% share, while DoorDash controls around 10%.

Instacart is under fire for using algorithmic pricing, charging different prices for the same items. A study found that prices could vary by up to 23% for identical items, potentially costing households an extra $1,200 per year. Experts warn that these pricing tactics could erode consumer trust and exacerbate affordability issues.

In response to the controversy, Instacart claims that retailers control item pricing, but evidence suggests otherwise. The company’s new pricing tools allow for targeted offers based on customer segments and demographic data. Despite the pricing scandal, Instacart reported a 22% increase in adjusted EBITDA in Q3 2025, positioning itself as a full-stack technology partner for the retail industry. Instacart shares dropped after reports of price discrimination experiments surfaced. Founded in 2012, Instacart offered on-demand grocery delivery in the Bay Area. The company expanded with Instacart Express membership in 2013 and moved into Canada in 2017. Valuation soared to $39 billion in 2020–2021. Instacart went public in September 2023, raising $660 million. Chris Rogers became CEO in 2025. In December 2025, Instacart sued New York City over worker pay laws, citing conflicts with federal and state regulations.

Read more at Yahoo Finance: Food delivery app accused of secretly manipulating prices