The Federal Trade Commission has reportedly sent the company a civil investigative demand and is seeking information about Instacart's Eversight pricing tool.
- Instacart acquired Eversight in 2022 for $59 million, adding an AI-powered pricing and promotions platform used by retailers and consumer packaged goods companies to test pricing strategies.
- The reported move comes after a study found that some U.S. shoppers were forced to pay higher prices for the same items on Instacart than others.
- Rising inflation has remained a sensitive issue in U.S. politics.
Maple Bear (CART) stock fell over 6% in premarket trading on Thursday after a report said the Federal Trade Commission is probing Instacart over the use of its AI-driven pricing tool.
According to a Reuters News report, citing sources, the agency has sent the company a civil investigative demand and is seeking information about Instacart's Eversight pricing tool.
What Is The Pricing Tool?
Instacart acquired Eversight in 2022 for $59 million, adding an AI-powered pricing and promotions platform used by retailers and consumer packaged goods companies to test pricing strategies. According to Instacart’s website, grocers using Eversight typically see revenue gains of about 1% to 3%.
Instacart explained last week that the pricing tests it conducted through Eversight were random and did not include personal, demographic, or individual-level behavioral data. “This year, we’ve been working hard to encourage even more retailers to provide price parity between their stores and their websites,” Instacart wrote in a blog post.
The company also added that it does not set prices for the products offered on its platform. The prices, except for Target, are set by the retailers, and Instacart provides the technology to manage them.
Political Heat
The reported move comes after a study by Groundwork Collaborative, a progressive advocacy group, Consumer Reports, and the news organization More Perfect Union found that some U.S. shoppers were forced to pay higher prices for the same items on Instacart than others.
Rising inflation has remained a sensitive issue in U.S. politics. During the regional elections in November, including the Mayoral race in New York City, and gubernatorial races in New Jersey and Virginia, Democratic candidates won resounding victories after building their campaigns around the affordability crisis.
What Are Stocktwits Users Saying?
Retail sentiment on Stocktwits about Maple Bear was in the ‘neutral’ territory at the time of writing.
Maple Bear stock has gained over 8.6% this year.
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