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How to Build a Location-Based App for Your Business

When you download a new app on your smartphone, you've probably noticed that many of them ask to access your location. These are location-based apps that are becoming an important part of the modern world. 

These requests are not meant to invade your privacy but rather to improve and personalize your experience. In fact, 30% of mobile searches use location data.

Social networks, for example, use your location to suggest relevant content and let you tag posts. Weather apps need your location for real-time updates and alerts. 

As a result of this tech’s popularity, the location-based marketing industry was valued at $55.79 billion in 2024, with projections to grow to $232.7 billion by 2033.

This guide from SapientPro's tech experts highlights the key features of location-based apps, shares popular examples, and gives practical tips on how to make a location based app.

Key Takeaways

  • Location-based apps use maps and geolocation to make life simpler and improve user satisfaction by offering a personalized and efficient experience;
  • Some common types of location-based apps include social networks, delivery apps, fitness apps, and marketplaces;
  • When creating a location-based app, businesses should clearly explain why they collect data and how they will use it.

What Are Location-Based Apps?

A location-based app is a mobile or web application that uses your device's location to offer personalized services. These apps, built with location-based technology, use GPS, mobile data, or WiFi to make things simple for users.

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Examples include food delivery apps like Grubhub, UberEats, and DoorDash. When you open these apps, they automatically use your location to show nearby restaurants that deliver. This means you don't have to type in your address, which saves time and is much more convenient.

You can also track your order in real time to see exactly when your food will arrive. This convenience keeps clients coming back.

Types of Location-Based Apps

Let's check out the main types of apps that use location-based technology. 

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Delivery and Navigation Apps

You probably know such free apps as Google Maps or Waze, which can help with simple route planning. But there are delivery and navigation apps that offer a lot more by serving as complete delivery management systems on your phone.

Apps like Uber and Lyft are perfect location-based services examples. They locate drivers near you using your location, show you where your ride is parked, and let you track your ride's journey.

Social Networks

Social media apps like TikTok, Facebook, Instagram, and Snapchat often ask to use your location when you sign in. While it's not necessary to share your location, doing so can help the app suggest content you'll probably enjoy.

Let’s say you're using Instagram. It could show you certain videos based on where you are. But if someone in Italy uploads a video and wants it to be visible in the US, it must first become popular in Italy before appearing in the US.

Dating Apps

The app should determine a user's city to help find matches. Dating apps like Tinder, Hinge, and Bumble typically request users' locations to show nearby potential partners.

Fitness Apps

Geolocation is a great complement to fitness apps. Apps like MapMyRun and Runkeeper connect with fitness trackers to help joggers track their routes on their phones using satellite data. One study revealed that more than 75% of users used their fitness and health apps at least twice a week.

Many location-based fitness apps also offer personalized route suggestions and community challenges based on your location to make the experience even better.

Marketplaces

In apps like eBay and Amazon, users expect constant updates about their deliveries. To provide this information, the apps use APIs to track where both buyers and sellers are. For example, Amazon has well over 310 million active users globally, and more than half use it for product research.

Also, these apps can customize search results based on the user's location. So, the products & services available in the US will differ from those seen by users in the UK.

Core Features of a Location-Based Mobile App

To make your location-based app valuable for users, you should customize it for your audience and industry. This includes incorporating several key features.

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Easy Map Viewing

Maps are actually core in a location-based app. They help users find where they are, plan routes, or discover new places. You can also personalize these maps with unique overlays and interactive features to match your app's needs. 

Authorization 

Authorization lets users share notes and reviews with others. It's similar to handing someone a key to unlock something unique tied to specific locations. When users share tips and insights, they help others discover hidden spots for similar adventures that aren't obvious on the map.

Personalized Notifications

Personalized push notifications help better connect with users. You can send promotions, reminders, or updates about local restaurants depending on the user's location.

Also, sending a discount alert to someone passing by your store can boost interaction since you directly provide them with relevant offers.

Reward Programs

A reward program can boost your company and help you retain customers. For example, you motivate clients to come back and engage more by offering points for visits or app usage. 

Places Near Me

Location-based services apps with this feature help users easily find nearby places like restaurants, cafes, and other attractions. This feature makes your app useful whenever it's used.

To make it even better, you can offer both map and list views so users can explore however they prefer. Sharing reviews, ratings, and photos helps them easily choose their next adventure.

Analytics & Monetization Insight

Location-based apps gather customer data to understand their preferences and behavior. This information helps you improve their experience and provide tailored solutions.

You can also enhance your app with features like ratings, weather updates, voice assistance, location sharing, and photo searches.

Saved Location

Letting users save frequent places like Home, Work, or Favorites makes your app more user-friendly and personalized.

For example, travelers can use certain travel apps to save places they want to visit, like tourist attractions, hotels, and restaurants. In the same way, social network apps allow users to save favorite spots for meeting or hanging out, which makes it easy to plan and share with friends.

Augmented Reality

Geolocation apps use augmented reality to provide information and services based on your location.

For example, in a mall, these apps can help you find a specific store. While shopping, you might get personalized discounts and detailed product info by pointing your phone at items. In grocery stores, you can view ingredient lists, calorie details, and cooking tips.

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Benefits of Location-Based App Development for Business

Location-based apps do more than just give you directions. By using maps and geolocation, they make life easier and improve user satisfaction by providing a personalized and efficient experience. Here's how geolocation can make a big difference.

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More Efficient Shopping Experiences

Imagine you've designed an app for travel bag fans. By using geolocation, you can notify users when travel bags go on sale in their specific area or time zone. This ensures they get timely and relevant updates and makes your app a must-have for their shopping needs.

Virtual Tours

Geolocation can add an immersive element to your app. Look at the SmartGuide app, for example. It combines precise geolocation with virtual tours and covers over 1,500 popular spots around the world. As you visit these places, you'll automatically hear audio from local guides when you arrive at each attraction.

Better Customer Relationships

Geolocation opens up innovative ways to connect with your audience. Users can quickly find nearby places, explore new spots, and read reviews through your app. By personalizing content based on their interests and locations, you can build stronger and more meaningful relationships with your customers.

Improved Sales and Revenue

Businesses can increase revenue by providing promotions and discounts based on each client's location. This can draw more people to physical stores and boost online sales with targeted offers.

Operational Efficiency

Location-based apps are useful for optimizing logistics and operations. They help with tasks like connecting to a driver, planning delivery routes, and tracking assets in real time.

For example, apps like Uber use precise geolocation to quickly match you with a nearby driver, often in less than a minute.

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Challenges in Location-Based App Development

Wondering about the challenges of creating geolocation apps is the right question to ask. Since these apps track user locations in real time, people might start to worry about security and fraud prevention. Let's explore some common issues and their solutions.

1. Access to the User's Location Data

Creating location-based apps often involves the tough task of getting permission to access users' location data. Although this data is necessary for this type of app, users are becoming more concerned about privacy. As a result, many are hesitant to share their location, which can negatively impact the app's performance and user experience.

Solution:

Businesses need to be clear about why they're collecting data and how they'll use it. They should also tell users how to opt out or delete their data from the app. Letting users decide when and how their location is shared (like only during app use) is a good practice.

Also, it's important to comply with privacy laws like GDPR and CCPA. They require businesses to get clear consent before collecting any personal data, including location information.

2. Battery Drain & User Opt-Outs

Location-based apps often drain a device’s battery because they use GPS and other location services. This can lead to a poor user experience, less app engagement, and negative reviews.

Solution:

Businesses can implement several practical strategies to reduce battery drain. 

For example:

  • Enable location services only when the app is in use, instead of running them constantly in the background. This reduces battery and data use and boosts app performance;
  • Choose less power-hungry location services that rely on Wi-Fi and cellular networks rather than GPS;
  • Offer users tips for saving battery, like disabling unnecessary app features and adjusting device settings. 

3. Integration with Existing Stack

Building location-based apps can be quite complicated because of issues with geolocation technology like GPS, cellular networks, and Wi-Fi. These are needed for adding location features to an app, but integrating them can be challenging and lead to errors.

Solution:

Businesses need to ensure their geolocation technology works with users' devices and systems. Using third-party services that operate across various platforms can simplify integration.

A great approach would be to include effective error handling and do thorough testing early on, so you can catch and fix any location issues. 

4. Customer Service

A common issue with location-based apps is providing customer support. Like any mobile app, these apps can face typical app issues, plus specific ones like location accuracy, difficulties with indoor navigation, and trouble identifying exact locations.

Solution:

Businesses can add a feedback system in the app to let users report location data issues. Clearly explaining how the app uses location data and its benefits can help build trust and minimize confusion.

It's also important to offer support through multiple channels, like email, chat, and phone. Providing a knowledge base with FAQs, troubleshooting guides, and tutorials can help users solve basic issues on their own.

Privacy, performance, and integration challenges are inevitable in location-based apps. The winners will be those who handle user data transparently, optimize battery use, and test relentlessly across platforms. Trust and UX aren’t side effects—they’re the product. Solve these well, and adoption will follow.

Examples of Popular Location-Based Apps

Let's explore some popular location-based apps and see what makes them so beneficial.

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  • Waze. Waze is popular for its community-based navigation. It uses user data to provide real-time updates on traffic, accidents, and road conditions. It can quickly change your route based on live feedback, which is perfect for daily commuters looking for the quickest routes.
  • Hello. This social app allows you to share updates with friends or everyone. Rather than texting, you can post what's going on. You can also create groups and host events for location-based activities.
  • Uber. Uber, a popular ride-sharing app, has inspired many others with its concept. It provides separate interfaces for drivers and passengers, which helps find your location, calculate fares, and plan routes. Moreover, Uber operates in more than 60 countries.
  • MapMyFitness. MapMyFitness can track workouts, log diets, and connect you with friends for motivation. It uses geolocation to suggest the right routes and find fitness centers and running paths worldwide.
  • Glympse. Glympse lets you share your location safely and temporarily without an account. You just need to send a link to show your live location for meet-ups. You have the option to decide how long to share your location and ensure your privacy.
  • Apple Maps. Created for Apple devices, Apple Maps offers great traffic updates and easy-to-follow directions. It has significantly improved since the first launch and remains popular with Apple users for its privacy and simple design.
  • Google Maps. Google Maps is popular among Android users for its accuracy and extensive database of places. It offers real-time traffic updates, street view, and offline access to improve the user experience. It also works with rideshare services.
  • Happn. Happn is a popular social and dating app that uses real-time location to show you people you've crossed paths with. Plus, you can decide who sees your profile to improve your privacy.

Another example that stands out is Mastrack – a powerful GPS tracking platform that provides real-time insight into vehicle location and behavior. SapientPro's team helped the company grow from a basic MVP into a full-scale solution, reaching 10x faster management speed and 30% more subscribers. 

How Much Does It Cost to Develop a Location-Based Application

To develop a location-based service app, your budget could be anywhere from $10,000 to over $200,000. This depends on your app's complexity and how many features you want to add. Below is a basic price chart that shows approximate development costs for a medium-complexity app. 

Note: this data is based on the industry's average. Contact SapientPro's team to get a detailed estimate.

Development phase

Estimated cost ($)

Research and planning:

market analysis, defining features, and project plan

$5,000 - $10,000  

UI/UX design:

designing the user interface and user experience

$10,000 - $20,000 

Front-end development:

developing the client-side application, including its layout and design

$15,000 - $30,000

Back-end development:

server development, setting up databases, and connecting APIs

$20,000 - $40,000

Location services integration:

integration of GPS, mapping, and location-based features

$10,000 - $20,000

Testing:

checking out functionality, usability, and performance

$5,000 - $10,000  

Deployment:

app submission to app stores and initial launch activities

$3,000 - $7,000

Maintenance and updates:

annual estimate for support, bug fixes, and feature updates

$10,000 - $20,000
Total estimated cost$75,000 - $160,000

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Ideas for Your Own Location-Based Apps

Many apps now use user location, and despite the large market, there's still space for new and innovative startups. Here are some ideas for location-based apps that could lead your business to success.

Apps That Display Content Only When You’re in Specific Locations

This type of location-based app lets users and brands share messages, photos, or discounts that are visible only at specific locations.

For example, users can suggest interesting places to friends or mark special occasions using this feature. Brands use it to draw more visitors to less popular areas by offering discounts or limited-time deals when people are nearby.

Apps That Show Pet-Friendly Places

This app helps pet owners find nearby places that welcome pets, like parks, hotels, cafes, and stores. You can also check out pet policies, features, and user reviews. 

Location-Based Apps That Connect with Volunteers

This app helps you easily find volunteer opportunities and community service projects near you. You can search for local organizations, charities, and events, and get information about the activities and time commitments.

Apps That Use Geolocation to Alert Users About Threats

Safety isn't as common as it used to be, considering natural disasters, terrorism, and other events. An app like this helps by sending important alerts based on local news, possibly preventing users from going to places where threats might occur. It helps them stay informed and protected without being overwhelmed by negative news from everywhere.

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Here’s how SapientPro helps different brands grow:

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