Sarthak Ahuja, Director of Niamh Ventures Private Limited, recently shared a striking observation regarding the pricing strategy of India's fast-growing quick commerce apps. Ahuja noticed that by simply downloading Swiggy Instamart, a direct competitor to Blinkit, he witnessed a reduction in Blinkit's delivery charges and prices for non-MRP items, such as fruits and vegetables, by almost 20%. This revelation has sparked a discussion about how app installations might influence not only pricing but also how companies track consumer behavior.

Ahuja’s experience is tied to the broader concept of "algorithmic pricing" — a technique where prices are adjusted dynamically based on various factors, including competitor activity. In this case, Blinkit appeared to adjust its prices after sensing competition through the installed Swiggy Instamart app. This raises the possibility of app-based digital bargaining, where users unknowingly use competing apps as a means to negotiate lower prices on delivery services.

Beyond pricing, the Director's post also raised alarms about digital privacy. Ahuja suggested that apps like Dream11 (for fantasy sports) and crypto trading platforms might create a digital profile of a user that could be used in risk assessments when applying for loans. This could result in higher interest rates based on what is perceived as a "risky" persona due to app usage patterns.

Ahuja recommended two immediate steps for smartphone users concerned about privacy and pricing:

1. Download and switch between competing apps regularly to potentially push companies to offer better prices, even if the effect is temporary.

2. Use a 'household phone' for sensitive transactions and shopping. This could help reduce the risk of personal digital profiling by companies that track app usage.

The post quickly gained traction on LinkedIn, where several users shared similar experiences. One user revealed that when adding the same groceries to the cart on two different phones, the price difference was staggering. On a higher-end Vivo X200 phone, the price was ₹6,000, but on a cheaper phone, the price dropped to ₹3,500 for the same items. Some users even speculated that app developers may be tracking device IMEI numbers to adjust pricing based on the phone being used.

Other users chimed in with their thoughts on the broader implications of this phenomenon. They noted that such algorithmic pricing models don’t just look at consumer activity but also factor in the device and the competitor apps installed on the user's phone. This suggests that consumers might unknowingly engage in digital bargaining by simply switching between apps or using different devices. One user even described the phenomenon as "digital bargaining," where consumers may not be aware that they're leveraging app installations as a price negotiation tool.

This growing concern about digital tracking and its impact on pricing and privacy highlights a need for greater awareness and transparency in the way apps operate. As more people share similar anecdotes, it is likely that this topic will continue to spark debate around digital privacy, algorithmic pricing, and the power that tech companies wield over consumer behavior.

In conclusion, while this new form of price adjustment could potentially benefit consumers in the short term, it also opens up conversations about how much control we are relinquishing to algorithms that track our digital footprints. As Ahuja suggested, consumers need to be more cautious about the apps they install on their devices, not only because of privacy concerns but also due to the potential influence they may have on pricing strategies.

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