Surge pricing has become a pretty common thing now. Uber and Lyft are the most well-known companies that do it. But it now seems like it's being extended into the grocery market.
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Customers are angry after Walmart has paved the way for their stores to start introducing surge pricing. As reported by the Daily Mail, the company has greenlit two new patents that are set to use AI to change prices.
The two patents work as follows. The first, which they secured back in January, "dynamically and automatically" updates online prices. Last week, they secured a second patent for a forecast tool to predict shoppers' buying habits and set the prices accordingly. And it looks like they might be planning to use them. The old paper labels have been replaced with electronic shelf labels in many Walmart stores as of late. They are currently used in over 2,000 stores. Walmart plans to start using the electronic shelf labels country-wide by next year.
It's worth noting that Walmart has pleaded with customers. They say that humans are still the driving force behind setting prices, even with these sparkly new patents in their hands.
This Isn't New, and Walmart Isn't the First
Experts were quick to assert that this practice isn't as uncommon as you think, and that Walmart isn't some kind of innovator here.
Bob Phibbs, a consumer expert, told the outlet that all the patent does is automate something done by every retailer. "Every retailer already does this with a spreadsheet and a gut feeling... prices can drop just as fast as they rise," he said.
Automatic surge pricing also isn't a new thing. Instacart tried it out in 2025. Customers faced "smart rounding" (pretty much surge pricing) when purchasing from stores such as Costco and Safeway. There's also Ticketmaster, whose "dynamic pricing" setups got them a lawsuit from irate fans after they started "illegal" resale tactics.
And while the grocery prices won't exactly follow these other examples of surge pricing, change is still coming. According to Ted Jenkins, the companies will use these types of patents to try and squeeze out every dollar they can.
But one question remains... Will customers tolerate it? Or will they complain until it gets dropped? We'll have to wait and see.
