Location-Based App Development: Types, Features and Costs

With a compound annual growth rate of 28 percent (CAGR), the location based services market is expected to hit $80 billion by 2023. For entrepreneurs these days, the issue regarding location based app development makes a lot more of sense. Due to the growing popularity of on-demand economy services and fleet management, location based apps will almost certainly become a requirement, particularly during and after the global lockdown in 2020.

All of these applications, like Lyft, Facebook, Tinder, Airbnb, Food Delivery, Transportation Apps use geolocation. But what tools are used by location based users, and why are they used? What steps do you take to build a fantastic geolocation app?

We’ll go over everything in this guide, from geolocation technology to location based app development and the software stack that goes with it.

1. How does Location Based App work?

“A location-based service (LBS) is a general term denoting software development services which utilize geographic data and information to provide services or information to users. LBS can be used in a variety of contexts, such as health, indoor object search, entertainment, work, personal life, etc. Commonly used examples of location based services include navigation software, social networking services, location-based advertising, and tracking systems. LBS can also include mobile commerce when taking the form of coupons or advertising directed at customers based on their current location. They include personalized weather services and even location-based games.” – Wikipedia

Nowadays, everybody has a smartphone, and location-based apps are a vital tool for locating someone, a spot, or a service nearby. Wi-Fi, cell tower data, and satellite/GPS are all used to send location information to these apps. Both smartphones come with built-in GPS, which can be enhanced using Wi-Fi or a mobile network.

You must use location services’ APIs and maps when creating location-based mobile apps. They also include information about items in their immediate vicinity, as well as relevant tips, useful facts, directions, and suggestions for a location or service.

Both the iOS and Android systems have their own location-based APIs and Google Maps is the best location-based software, as it runs well on Android, Windows Phone, and iPhone, showcasing flawless cross-platform capabilities.

1.1. The Use of Geolocation Services:

The spatial information about your device’s location is referred to as geolocation. It may be a smartphone running on iOS or Android, a fitness tracker, or something else with a GPS chip or a Wi-Fi connection (like IoT devices). This is due to the fact that location-based services do not often depend on GPS and other satellite systems.

For example, data about the position of cellular network stations (GSM, UMTS, and so on) or Wi-Fi access points may be used to determine the location of a mobile device.

• Location trackers (Waze, Glympse, Google Maps)
• Social networks, messengers (Facebook, WhatsApp)
• Dating apps (Tinder, OkCupid)
• Fitness apps with GPS route tracking (Nike Running Club, MyFitnessPal)
• On-demand delivery apps (Uber, UberEats, Zomato)
• Travel apps (Expedia, TripAdvisor, Booking)
• Weather apps (Accuweather)
• Photo location finder apps (Google Photos, Explorest)

1.2. Key Features of Location-Based services apps:

• Users mark themselves and share their position with others (like sharing your location in WhatsApp / Facebook Messenger)
• Apps calculate the distance between objects (for example, Google Maps pinpoints your position and displays the nearest point-of-interest that you search).
• In-app maps create the most efficient routes from one location to another (Uber/Grab/Google Maps shows the fastest ways to the destination)

2. What Is Geolocation in Apps For?

Let’s start with a question: why do people use location-based apps in the first place? According to a Statista survey, 65 percent said it was for weather services when asked. Networking (38 percent), news (16 percent), and photo and video services were among the other groups where geolocation functions were used (18 percent). It’s no surprise that using GPS data gives developers an advantage when it comes to creating a customized user experience in any niche or industry.

This is why advertisers are so interested in geolocation technologies. According to Statista, 67 percent of marketing professionals in the United States use GPS data for targeting, and 52 percent use it to personalize consumer interactions.

The demand for location-aware apps has grown due to the numerous opportunities for targeted advertising and personalization. These apps keep track of their users’ whereabouts and display relevant content based on that information. Weather apps that include forecasts based on a user’s position, restaurant apps, shopping apps, and so on are examples.

Increased demand for accurate and quick services shifts companies’ attention to location-based app development. More than 7 out of 10 marketers say location-based services generated growth in their client base and higher customer engagement.

• Marketing: Geolocation is a great marketing tool to reach target audiences and get additional ways of interacting with clients.
• Information: This function allows users to get real-time information about the nearest places or objects within a specific location.
• Communication: Companies can put places on the map to obtain customers’ feedback on select services, allow them to attach their own content (photo or text messages) to specific places on the map, and read other people’s reviews. Thus, you’ll be able to adapt to the changing preferences of your audiences.
• Social: The app will help you find out users’ current location and strengthen the brand’s position in the media space.

3. Benefits of Developing Location-Based Applications for Businesses

In general, location-based apps have many benefits, ranging from data collection and analysis to the development of new user experiences. Some businesses cannot perform without locating clients (Uber Eats, Postmates, Instacart). In contrast, others use geolocation features (Instagram, Tinder) to provide better customer service. Once developed, location-based software can help with one or more of the following:

3.1. Source of Information

Users can get information about their location, nearby items, or the best route to a destination using a GPS-enabled app. The Fastmall app, for example, provides shoppers with an interactive map that includes shops, bathrooms, restaurants, and parking spaces. With only a few clicks, the location service can also help users locate a baby stroller.

3.2. Social Interaction Component

Mates, family members, and other users can use GPS apps to see where they can communicate with each other. This can also be used to help narrow down groups of social media users, such as veterans, who are looking for work or want to connect with other veterans in their area. Hire a Hero is an excellent example of this feature.

3.3. General Communication

Users can pin a position on a map or leave feedback about a business and share it with others using GPS location apps. They also allow you to geotag your images and videos. If you’re considering how to build a GPS app that allows users to find interesting locations, don’t overlook the communication aspect. GPS technology is used by hotel and rental apps such as Booking.com and Airbnb to enable customers to share their experiences.

3.4. Insights From The Market

Geolocation technologies allow the collection of information about users’ locations and, as a result, the creation of user-centered advertisements. Starbucks’ Happy Hour campaign is a brilliant example of this technology. Starbucks sends customized alerts when a 50 percent discount in the closest store goes into effect. This allows people to use the app to make purchases.

3.5. Next-Gen Experience With Augmented Reality

Pokémon Go and other location based game have already became people’s favourites these days, they demonstrated that GPS development is a good match for augmented reality and applications that can take advantages of it.

3.6. Precise and Prompt Services

One of the primary benefits of location-based applications is that they allow companies to serve users near their immediate geographic area, increasing customer loyalty. For instance, Uber can quickly identify the exact users’ location and send their products or services as soon as possible using GPS technology.

3.7. Purchase Suggestions

You can analyze users’ buying patterns using location data to offer personalized purchase suggestions. Customers can also search for products/services on smartphones, and geolocation applications will help brands promote their recommendations locally.

3.8. Mobile Advertising

The app automatically defines the users’ whereabouts to target advertisements. Such advertising can be executed as push notifications being sent by applications that use geolocation.

4. Technologies That Enable Geolocation Functionality

Let’s start with the fundamental principle before moving on to the technical aspects of location-based app development. With the aid of a mobile device’s operating system, location-based applications create a link with satellites. The OS provides information about the current system location to the application. It defines the pattern of a moving object or individual by collecting and processing data in real time.

According to Statista, around 50% people from age of 18 to 64 use Location-based App for navigation in the US.

4.1. GPS

Modern smartphones have a chip that allows users to link to the Global Positioning System (GPS). This helps devices to calculate their current position with a 60-foot precision. GPS needs data from at least three satellites to complete this mission. Due to the availability of GPS support on smartphones, this method of geo position tracking is the most commonly used today. GPS becomes a main topic as we explore how to build a location-based app with our clients due to its widespread popularity and accuracy.

Advantages:

• The position is calculated easily enough, which is critical for location-based apps to function properly.
• Since GPS receivers are accurate assistants in determining the user’s position (even if we’re dealing with altitude above sea level), the precision of the result will be high if the conditions are nice.

Disadvantages:

• Battery life is reduced. Despite the fact that developers are working hard to reduce GPS’s power consumption, the device’s battery life is still short.
• Insufficient trustworthiness. Any system can malfunction, but the performance and efficiency of GPS receivers are highly dependent on the mobile device’s interaction with orbiting satellites (and numerous external factors can affect this process).
• Atmospheric conditions and numerous obstacles have an effect. Large signal deviations may be caused by geomagnetic storms, tall trees, or tall buildings (up to 75-85 meters).

4.2. Cell ID

Another technology, Cell ID, is a less common choice due to poor coverage outside of major cities. With the support of cell towers, Cell ID decides location. The system compares the towers to which a computer is linked to the database of all nearby stations. The accuracy is not as good as GPS.

Advantages:

• When it comes to major cities, the locating approach is an excellent option.
• The solution is independent of the GPS signal’s service and availability.

Disadvantages:

• Positioning accuracy is just a few hundred meters (in some cases).

4.3. A-GPS (Assisted GPS)

This technology incorporates two of the aforementioned technologies – GPS and Cell ID – to provide a higher degree of precision than either Cell ID or GPS alone. Consider A-GPS if you’re trying to figure out how to make a GPS app with pinpoint accuracy.

Advantages:

• The user position can be determined quickly.
• Sensitivity to “problem areas” has increased (such as depressions, tunnels, dense forest, etc).
• Battery power consumption is low.

Disadvantages:

• Some A-GPS features are only useful when you’re in a cellular coverage area, and they’re useless when you’re not.
• Expenses have increased. The A-GPS solution absorbs a small amount of traffic when it first starts up; however, there is a chance that a signal will be lost, necessitating re-synchronization. It entails additional costs, especially when roaming.

4.4. Wifi

Wi-Fi, in comparison to Cell ID, covers a smaller range, allowing the technology to be more accurate. Wi-Fi can be used to calculate position in two different ways. With the aid of Wi-Fi nodes, the RSSI approach (received signal intensity indication) locates a user. The signal weakens as a system moves away from this point. This feature might be useful if you want to learn how to make a location-based app for an urban area.

4.5. Geo-fencing

This system is based on GPS, which determines how near a user is to a specific location. In the advertising world, geofencing is often used to target users with specific advertisements and deals. However, the range of potential applications is much wider, and geofencing is a solution for offering a more customized shopping experience.

Triggers are used in geofencing in three ways:

• Static triggers function when a user visits a specific location;
• dynamic triggers monitor location and submit alerts based on changes in the environment, such as when a parking space becomes available when a user passes by;
• and combined triggers combine the two.

4.6. iBeacon and Eddystone

Apple and Google developed iBeacon and Eddystone, respectively. Bluetooth Low Energy (BLE) signals are used in all of these technologies. Only when an individual is beyond their reach can they send triggers to a computer.

iBeacon and Eddystone are known for their pinpoint accuracy. These two innovations will be a worthy addition to the core features if you want to learn how to build a location-based app for accurate indoor navigation.

AR functionality for location-based applications is an optional feature that can help you differentiate your product from the competition.

5. Location-based App Development Process

You asked about the different types of GPS apps, how to create a GPS app technically, and how much it will cost at the start of your questionnaire. You’re nearly ready to begin developing your own location-based app. Let’s take a look at a quick rundown of the location-based app development process, which includes all of the steps required to create a successful mobile app:

1. Exploration of the market and competitor research: You can do these things on your own and email the organization with a ready-made solution and a well-written request. Otherwise, if you are unsure of your skills, you should seek assistance from a specialist organization.
2. Prototyping: is the process of creating a model. Now you’re visualizing your idea and putting together its conceptual framework. As a result, you’ll have a better understanding of how your app will look and which screens it will have.
3. Mobile app design with GPS geolocation: UX/UI design is a unique field that necessitates experts with a keen sense of style. The design of the app should be simple, easy to understand, and intuitive.
4. The coding process is an essential part: of the geolocation app creation process. If you want to make a geolocation app that works on all platforms, it’s best if the business has iOS, Android, and web developers.
5. Testing: Never overlook the testing stage! Otherwise, you run the risk of having an application that fails at the most inconvenient time. As a result, disgruntled users are more likely to uninstall the software they’ve already installed, and you’ll have to work hard to convince them to reconsider and download it again.
6. App Release: The process of developing a location-based mobile app is now complete.

6. How Much Does it Cost to Develop a Location-Based App?

How can you transform your location-based app into a successful company with a high return on investment? Calculating your initial investment is the first step in answering this question. To begin, a number of factors influence the cost of developing a location-based app:

• The number of features and their complexity
• The number of platforms you wish to release your app on, as well as your tech stack
• Software Development Company Location (Vietnam is the ideal location)
• GPS software developers’ hourly rate
• The sophistication of app’s design

It’s worth noting that deciding which channels to target is crucial. Your app will run on Android, iOS, or both at the same time. It may also have a Web version or be represented as a Progressive Web App (PWA) (Progressive Web App).

The price will depend on the time your team will spend on every step and their hourly rate. In this regard, it makes sense to look for an outsource development team in Vietnam. The hourly rates in Vietnam are wallet-friendly. For example the average rate of a software developer is between 20 to 30 USD per hour.

If you’re wondering how to make a GPS navigation app for Android & IOS, the MVP location-based app will cost around $60,000. A full-fledged product with more complex app features would cost about $150,000+ and take 4 to 9 months to develop.

7. Types of Location-Based Apps

Geolocation technology is used in any service-based business. They are not restricted to taxi services or searching for the nearest store. Navigators, guides, social media with geotagged pictures, route planning, and fitness apps with track speeds relate to location-based services. Commonly, geolocation applications are divided into several groups. Let’s consider the most popular ones in each group and what GPS-enabled functionality they offer so you may have a clearer picture in mind.

7.1. Geosocial Apps

On social media, users frequently tag the location of a restaurant, cinema, gym, or hotel. Instead of writing an address, pointing to a location to answer the question “where are you?” is much easier and faster. Location technology is also used by dating apps to help users find partners in a specific location.

The best examples of creating a location-based app of this type are Facebook, Tinder, and WhatsApp. For example, Facebook made $25.4 billion in revenue in the first quarter of 2021, with $16.1 billion in total funding. Furthermore, there are over 2.80 billion active users globally.

7.2. Maps and Navigation

The most popular approach to geolocation app development is mapping and navigation apps. These apps assist users in navigating new areas by tracking their location and mapping out the best routes. Furthermore, some services can display traffic congestion.

Examples of navigation apps include Google Maps, Waze, and Glympse. In 2021, Google Maps will generate $4.3 billion in revenue, with 1 billion active users.

7.3. On-Demand Services

The most popular approach to geolocation app development is mapping and navigation apps. These apps assist users in navigating new areas by tracking their location and mapping out the best routes. Furthermore, some services can display traffic congestion.

Examples of navigation apps include Google Maps, Waze, and Glympse. In 2021, Google Maps will generate $4.3 billion in revenue, with 1 billion active users.

7.4. Fitness Apps

The fitness industry has struck gold as more and more people worldwide prioritize their health. Users can create jogging routes, track outdoor sports activities (running, swimming, cycling, and so on), plan workouts, make recommendations, and track daily progress using geolocation apps. Furthermore, people can publish statistics on Instagram or Facebook to share their accomplishments ( speed, routes taken, and so on).

Entrepreneurs have been inspired by Nike Running Club and MyFitnessPal to investigate how to design GPS-based fitness apps. MyFitnessPal has an estimated annual revenue of $128 million and total funding of $18 million. There are now 200 million active users on the platform.

7.5. Augmented Reality and Games

The well-known Pokemon Go game also makes use of GPS and Google maps. Users can “catch Pokemon” all over the city using location-based apps. Furthermore, the service is social in nature and groups users into teams. So, if you want to make engaging games, consider geolocation app development to give your customers a great experience.

In 2020, Pokemon Go brought in $916 million, and it’s expected to hit $5 billion soon. This app is used by over 827 thousand people in the United States.

7.6. Finding Services and Recommendations

These types of apps provide individual recommendations of cafes, restaurants, shops, hotels, and cultural establishments for users to visit within their location based on their preferences and interests. For example, if a person frequently visits Starbucks stores, the app saves their location and displays the closest ones.

The best examples of geolocation apps that allow users to track the places they used to visit are Yelp and Foursquare. Yelp made $232.1 million in the first quarter of 2021, with total funding of $54 million. Every month, the platform receives 178 million unique visitors from various devices.

7.7. Travel Apps

There are numerous applications for geolocation-based travel apps. They can provide guided tours to users worldwide, or they can be more specific and make recommendations for nearby hotels or apartments. When used in conjunction with augmented reality, people can choose which locations they want to visit and receive recommendations for places to visit as well as optimal routes. All pertinent information about local attractions and businesses is sent directly to the user’s smartphone.

Airbnb, Expedia, and Booking are just a few examples of how to create a location-based app. Booking revenue is expected to reach $6.8 billion in 2020. There were 50 million downloads in the following years.

7.8. E-commerce

Geolocation features are used by e-commerce platforms to provide delivery information to customers. As a result, location-based apps assist retailers in determining clients’ locations in order to provide the best possible delivery solutions, resulting in customer retention.

The most well-known e-commerce apps with geolocation functionality are Amazon, eBay, and AliExpress. Amazon’s earnings were expected to reach $108.5 billion in the first quarter of 2021, and $116 billion in the second quarter. The total funding, on the other hand, was $108 million. On the marketplace, 1.9 million sellers are actively promoting their products. Prime members now number more than 100 million.

8. Final Thoughts

By now, you have gone through the uses of geolocation technologies, learned their benefits, discovered the needed steps on how to make a GPS app, and roughly know about the budget for its technical aspects. We have made the following shortlist to give you some location-based app ideas that could potentially gain popularity:

• Location-based social networking apps
• Location-based discount apps
• Messaging apps based on geolocation
• Location finder apps by photo
• IoT applications