Why Woolworths customers pay higher prices when using online shopping app

The same product was spotted for two very different prices.

Woolworths shoppers are being exposed to higher price points depending on how they choose to buy their groceries from the supermarket giant.

Those who use the MILKRUN app which is 'powered by Woolworths Metro' are being offered special prices online which do not always match those in-store and are often more expensive, with no clear indication this is the case.

This was evident when a shopper clocked a laundry product available on the app at the special price of $7.40 on Sunday evening, with the same 900ml bottle of Comfort fabric conditioner available in store for only $4.50 — a 64 per cent increase.

The Woolworths product can be seen in the shop for $4.50 (left) but priced at $7.40 in the MILKRUN app (right).
A Woolworths customer buying the laundry product on the MILKRUN app would have paid 64 per cent more compared to those who went in-store on Sunday. Source: Yahoo News Australia and MILKRUN

There was also a price difference between the original prices for the fabric conditioner, with customers on the app paying 70 cents more if the discounted rate was not available.

Price discrepancy defended by MILKRUN

Yahoo News Australia understands the product's price difference takes into account the delivery service customer's experience when using the app, much like UberEats.

"We provide our customers with the convenience of more than 10,000 products," a MILKRUN spokesperson told Yahoo.

The spokesperson continued by explaining users have "thousands of weekly specials" and "exclusive MILKRUN deals" available to them, however it appears the deals are not always reflective of the best possible prices available at Woolworths. It is unknown how many products are priced higher than those instore or how frequently shoppers on the app will be spending more.

Time poor customers may opt for this method for "convenience" with a flat rate of $5 for delivery charged to shoppers on the app. There are no service costs and deliveries often arrive comfortably within an hour of ordering. It is believed products on the Woolworths app are price matched to those in store with up to $15 charged for delivery.

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