Location-Based Apps and Their Business Benefits

Apr 14
Location-Based Apps

Mobile apps are constantly changing how we live and work. Whether you’re commuting home via Uber, making new connections on Instagram, or even just killing some free time via Pokemon Go – you’re engaging with platforms that are bringing plenty of change to our social and professional lives. But – aside from popularity – what do all of these apps have in common? Well, they’re all location-based application services. Like the name says, location-based apps are able to figure out the location of their users and introduce the user to various services based on their location.

Location-based apps have made going about our daily business far more convenient. They can serve as mobile guides while we explore new cities, or even let our friends know where we are.

There are over 2.5 billion smartphone users in the world today. That’s a massive target audience for a wide variety of industries, including hospitality, education, retail, transportation, entertainment, and healthcare. Competition can be fierce in these sectors, but rolling out a customized mobile app can help any business stand out from the crowd. With the right app, businesses can benefit from consumer engagement and increased connectivity.

How LBS Works

Companies utilize location-based services to send their consumers relevant offers and personalized messages. These notifications take into account factors like purchase history, user behavior, preferences, and, of course, geographic location. Location-based services are able to work through a combination of GPS (Global Positioning System) and GIS (Global Information System).

Fundamentally, LBS is a two-way communication between the user of the app and an internet service provider. The user provides their location and preferences, and the location-based service provides the user with information tailored specifically to the user.

And the market for location-based services (or LBS) is only growing. The LBS market has a compound annual growth rate of 43%, which is a growth of over $8 billion.

Who Benefits From Location-Based Apps?

While every industry can benefit from LBS, only a few industries have unlocked the full potential of location-based application services. Here are a few examples:


Walmart, Target, and other major retail stores have been massively successful when it comes to leveraging the power of location-based apps. These brick-and-mortar retailers use LBS to help users find a nearby store, select a pickup location, or generally enhance their in-store experience. Some stores even integrate features that assist with in-store navigation. Many retail apps are also set-up to send personal notifications to customers when they are near the store.

On-Demand Delivery Services

Location-based services are wholly responsible for the rise of on-demand services. Just think about food delivery apps. These apps use LBS to let users track their orders at any stage in the order and delivery process. On-demand courier delivery is another great example of the marriage of LBS and on-demand delivery. Through LBS, users are able to track their courier and package in real-time. And the location-based delivery solution can also allow business owners to manage their delivery and ordering  process without any glitches. This is really a win-win situation for both, customers and business owners. The courier service can also manage the entire delivery process through an app.


GPS and GIS have made managing a fleet of automobiles incredibly easy. Whether it’s public transportation, logistics, or travel, companies can inform passengers of delays and give updates about vehicles in real-time. A prime example of an automotive app powered by location-based services is Uber. With a location that is tracked in real-time, family members and customers are able to track their vehicle during the entire length of the journey.


LBS and GPS are probably the most effective when it comes to the tourism industry. Tourism apps that utilize LBS are able to better assist tourists and provide real-time notifications based on their locations. Even something as simple as a map view can help with hotel booking. Think about it: it’s hard for anyone to book a hotel when they have no idea where it’s located, but, through the use of LBS, prospective tourists are able to identify the exact location of the hotel they’re booking. Apps like Airbnb and chain hotel apps like Marriott’s offer geolocation capabilities specifically for this reason.

Major Benefits of LBS

Regardless of the industry sector, location-based apps are bound to improve the value of any company. Location-based services can help marketers get a better idea about various groups of consumers. Here are just some examples:

  • Banking and Finance- Find out the nearest ATM or branch with specific services
  • Emergency- Book and track ambulance
  • Marketing- Mobile advertising and localization
  • Entertainment- Social networking and gaming

Overall, if customers grant the location-based apps permission, they can offer more personalized, customer-focused services. But that’s not to say only B2C companies can benefit from LBS. In recent years, B2B companies have also joined in using LBS to remain competitive and provide invaluable services and opportunities to their client base.

KitelyTech is ready and willing to help your business utilize location-based services to develop your very own killer app that will help elevate your product or service and create a more engaging relationship with your customers. Find out more by contacting KitelyTech today on (800) 274 2908.

Contact Us

    If you want to subscribe to our monthly newsletter, please submit the form below.

    Like Us On Facebook

    Facebook Pagelike Widget