Location based services have become an intrinsic part of our day-to-day lives. If we are traveling to a place and want to know the optimum route, we immediately reach out to the Google Maps application on our phone. If we are planning on an outdoor event, we seek out weather apps such as Accuweather that tell us how the day is going to be in a particular location. And not just that, location-based services play a huge role in ensuring personal safety. To let our near and dear ones know that we are safe if there is a natural calamity striking our location, we use the “Marked as Safe” option on Facebook. One can also track lost mobile phones using the location data. In this blog, we will understand the technology that powers Location Based Services and delve through some of the most common use cases of location-based services.
With a combination of geospatial technologies, communication technologies, and the Internet, Location-based services help provide real-time information to individuals based on their geographic location. In the case of Location-Based Service (LBS), the service refers to an IT service as opposed to traditional service offerings of companies. The services are further categorized into two main categories:
A location-based service (LBS) consists of 3 major components. They are as follows:
It is legally binding that location-based services must be permission-based. In other words, the end-user must opt-in to the service to use it. This is achieved by installing the LBS application and allowing the service to know the consumers’ device’s location.
The proliferation of mobile phones, internet penetration, accessibility of GPS and similar satellite-based positioning,
and extensive availability of mobile phone services has contributed to the widespread use of location-based services in
the B2C sector. Here are some of the popular use-cases of Outdoor Location Based Services:
One of the most popular use cases of Location based services are the Navigation apps. GoogleMaps has the highest brand
recall in this category. These applications help users find the best possible routes between two points, and deliver
real traffic data notifications and weather reports so that users can plan their travel accordingly. While these are
mostly outdoor applications, wayfinding apps can help in indoor navigation when used in a large premises such as a mall
or hospital or university campus.
Extrapolating on the navigation use case, location-based intelligence can further benefit retail customers to quickly
find the nearest store and service location. For example, if a customer has downloaded a retailer’s app, then they can
go to the “store location” and find the nearest store based on their current location. With the line blurring between
digital and physical retail, these apps can also be used by brick-and-mortar stores with an eCommerce functionality
where they encourage customers to buy online and pickup their order from a physical store. It can also be used by
eCommerce players where they tie-up with brands and let the customers pickup from their nearest outlet.
Yet again building upon the store and service locator use-case, retailers can further use the geo-location data to
understand the store preferences of the customers and deliver personalized offers when they are in the vicinity of those
retail outlets. This is known as proximity
marketing. Instead of casting a wider net, this way they can spend their marketing budget on customers who are
most likely going to purchase. Sometimes geofencing which is also a location-based service can be used to send/trigger
messages with promotional offers/contextual recommendations whenever a mobile device with the app installed in it is
entering, exiting, or parked in a defined geographical location. For instance, you get a promotional message from your
favorite coffee shop when you are in proximity of the shop.
Location tracking has helped companies in the logistics and logistics-dependant industries keep track of where their
shipments are and whether their employees are at the designated locations. For instance, food delivery apps help
customers know when their order has been received, packed, and dispatched as well as the time period in which it will be
delivered to them. This is usually done when their employees check in at a location using their mobile device and the
information is relayed to the customer in real-time.
Asset tracking is crucial in an industrial scenario where goods and merchandise are tracked using RFID or beacons which
continuously send their identification to a server via controllers. The location data is interpreted by software on the
server which communicates with a smart device to show the location of all the assets on a map. This helps in accurately
tracking inventory, helps in forecasting as well as prevents theft from happening since everything is recorded and under
There has been a significant rise in the number of accidents happening on the road which has led to the growth of
roadside assistance companies. These roadside assistance (RSA) companies provide an app that allows them to track the
users; exact location so that they do not have the added hassle to give directions to reach them in case an unfortunate
event happens. With location-based services roadside assistance companies are able to respond faster, process a higher
number of calls, route them correctly and assign the correct service provider to take up the matter, thereby providing
better service to customers in their time of need.
Geolocation frauds occur when criminals try to fabricate their location information by using the victim GPS and IP
address information. Location-based services can create an added security layer by matching a customer location via
their smartphone to a credit card transaction. By attaching the smartphone location to the customer credit card,
suspicious transactions made across several geographical locations can be flagged thereby preventing the fraud from
Social networking apps have been built on the premise of the location to reunite old friends or make new friends.
Whatsapp a popular messaging app has a feature of sharing real-time geo-location to help people find each other.
Similarly, dating apps have been built on the premise of location, to enable people with common interests and common
locations to come together. Extrapolating on this principle, location-based professional networks can be built to
empower professional connections and build community job boards.
In the year 2016 Pokemon Go created quite a stir when it combined location-based service, augmented reality and gaming
into an enthralling game that could be played by the people on the streets of their hometown. Though it had to be taken
down due to restrictions imposed by the governments of different countries, it opened up yet another opportunity to
showcase the use of location-based services.
As published in a research conducted by Meticulous Research, the location-based services market is expected to grow at a CAGR of 15.2% from 2022 to 2029 to reach $239.7 billion by 2029. While COVID-19 dampened the market performance for a short stint the demand for these services is on the rise as they find application in different sectors such as retail, logistics, pharmaceuticals, hospitality and automotive. New entrants providing cutting-edge technology solutions (& services) in this space are utilizing the COVID 19 period to capitalize on the market once it opens by initiating new product launches, enhancements to existing products, forging partnerships, and collaborations. As customers look for a more personalized experience, location-based service will be the very foundation of building apps that will enhance customer satisfaction.