Location Tracking in Mobile Apps: How It Works and Why It Matters

Location Tracking is Everywhere, but Are Businesses Using It to the Fullest?

Did you know that 74% of smartphone users allow apps to use their geolocation? At the same time, many companies still don’t fully understand how this technology can take their business to the next level. Uber, Glovo, Google Maps, even Tinder—all of these have become successful due to the proper use of GPS. But is geolocation really suitable for every business? And what risks might await companies that ignore this technology?

According to Forbes, 60% of companies that implemented geolocation into their business processes reported increased profits and improved customer interactions. So let’s break down how geolocation works, the opportunities it opens for business, and how to properly integrate it into mobile apps.

 

How Location Tracking Works in Mobile Apps

Location Tracking is a technology that determines the location of a device using GPS, Wi-Fi, or mobile networks. It is used in a wide range of services—from mapping apps to marketing campaigns with personalized offers.

GPS is the most accurate way to determine location, but it requires a strong signal.
Wi-Fi tracking works indoors and is used in shopping malls.
Mobile networks are less accurate but allow locating devices even without GPS.

How do companies use it? For example, Starbucks offers discounts when you walk past their café, and Glovo finds the nearest couriers for quick deliveries.

According to The New York Times, 70% of users are happy to share their geolocation if it improves their service experience.

 

Location Tracking in Business: Real-Life Cases 

Why has geolocation become crucial for many companies? Let’s look at some examples:

Uber & Bolt – Geolocation helps quickly find drivers and optimize routes, reducing customer wait times.
McDonald's – Uses geofencing to send special offers to users nearby the restaurant.
Nike – Uses GPS in their running app to allow users to track their routes and receive personalized recommendations.

Fact: According to Factual, 90% of marketers believe geolocation improves customer engagement. And Business Insider research shows that local push notifications increase foot traffic to offline stores by 40%.

 

Advantages of Using Geolocation in Mobile Apps

So, what does a business gain by implementing geolocation services?

 Increased customer engagement – Personalized offers and push notifications based on location work twice as effectively.
Logistics optimization – Delivery and transport services reduce costs by optimizing routes.
Improved user experience – The integration of maps and navigation makes the app more user-friendly.

 

Challenges and Risks: Is Everything Really Perfect?

But is there a downside? Yes, businesses need to be cautious:

 Privacy concerns – Users are increasingly worried about the security of their data. Legislation (GDPR, CCPA) regulates the use of personal information.
Resource consumption – GPS consumes a lot of energy, which can impact app performance.
Signal dependence – Geolocation may not work properly indoors or underground.

The solution? It’s essential to implement flexible settings so that users can control when and how the app uses their location.

 

Conclusion: Is Location Tracking a Must-Have or a Trend That Will Soon Fade Away?

Geolocation is not just a trend, but a tool that helps businesses attract customers, improve services, and optimize costs. However, it should be used wisely, balancing benefits with privacy.

According to Statista, the geolocation services market will grow to $157 billion by 2026. So, it’s clear that this technology is here to stay.

Additionally, according to Precedence Research, the global location-based services market was valued at $76.57 billion in 2024 and is projected to reach approximately $685.11 billion by 2034, with a compound annual growth rate (CAGR) of 24.5% during 2024-2034. This projection is based on research conducted in 2023, covering market trends and forecasts for the upcoming decade. (Source) 

Is your business implementing geolocation services? If not—maybe it’s time to think about it! KeyToTech can help you integrate location-based services into your mobile app, ensuring a seamless and efficient experience for your users. Let’s talk!