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 today, the issue regarding location based app development makes more sense than ever. Due to the growing popularity of on-demand economy services and fleet management, location based app development apps will almost certainly become a requirement.

All of these applications, like Lyft, Facebook, Tinder, Airbnb, Food Delivery, and Transportation Apps, use geolocation. But what tools are utilized by location based app development users, and why are they used? What steps should be taken to build a fantastic geolocation app? We’ll cover everything 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) refers to software development that utilizes geographic data to offer services to users. LBS can be used in various contexts like health, entertainment, and indoor object search. Examples include navigation software, social networks, and location based app development in advertising or tracking systems. The key to successful location based app development is integrating APIs and maps that allow real-time interactions based on the user’s location.” – Wikipedia

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?

Location-based apps offer personalized experiences and have become increasingly popular. Users value features like weather updates, local recommendations, and on-demand services. Companies focus on location-aware services to provide tailored experiences and engage customers.

Statista data shows:

• 65% use location-based apps for weather
• 38% use them for networking
• 16% use them for news
• 18% use them for photos and videos

Benefits of location-based apps:

• Marketing: Target specific audiences and engage with customers.
• Information: Access real-time information about nearby places.
• Communication: Facilitate user feedback and interaction.
• Social: Connect with users based on location and strengthen brand presence.

3. Benefits of Developing Location-Based Applications for Businesses

Increased demand for location based app development is due to its wide-ranging benefits for businesses. Companies can improve customer experiences by offering real-time information, precise delivery tracking, and personalized recommendations. Location based app development also enhances marketing through targeted mobile advertising and augmented reality experiences. 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

Technologies like GPS, Wi-Fi, and Cell ID form the foundation for location based app development. Combining these technologies in innovative ways allows for higher precision in app functionalities. For instance, the integration of iBeacon and Eddystone in location based app development adds accuracy for indoor navigation, a key feature in many modern applications.

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

4.1. GPS

GPS (Global Positioning System) is a commonly used technology for location-based apps. It uses satellites to determine a device’s location with high precision.

Advantages:

• Accurate positioning
• Easy to use

Disadvantages:

• Can drain battery life
• Susceptible to interference from atmospheric conditions and obstacles

While GPS offers high accuracy, it’s important to consider its potential drawbacks when developing location-based apps.

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.

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 with location based app development. 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. Market research and competitor analysis: Assess the market and identify potential competitors.
2. Prototyping: Create a model to visualize your app’s design and functionality.
3. Design: Develop a user-friendly and intuitive UI/UX design.
4. Development: Code the app for iOS, Android, and web platforms.
5. Testing: Thoroughly test the app to ensure quality and functionality.
6. Release: Launch your app on the desired app stores.

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.

 

 

 

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