Nowadays, GPS-relevant applications are in growing demand by both businesses and individuals. That’s because location-based apps use the device’s GPS and real-time geographic data to provide users with coupons and push notifications about specific offers when they are at a specific location. This type of platform benefits logistics, healthcare, and on-demand services due to GPS for route optimization, convenience, time efficiency, and service performance. This article explores how to develop a location-based app and its features, benefits, and challenges.
Why Businesses Need Location-Based Apps?
Location-based applications play a crucial role in intensifying businesses’ marketing campaigns based on the ability to promote products or services in terms of client’s real-time placement. From this point, it is essential to present how businesses can benefit from this application type.
Personalization & Customer Engagement
The individual’s current location can bring organization with an opportunity to present a personalized recommendation in the form of notification or popping-up discount coupon.
Another way businesses can attract clients within the location-based app is by sending special offers when they enter the competitor’s commercial area.
Optimization of User Experience
Location-based applications can help businesses promote their services due to the location check-in function. Users can take pictures and share them on social media by indicating the place. Although the users might not attend the place itself, the surplus of photos increases its visibility and recognition.
Another benefit for businesses is providing clients with service updates based on queue analysis in restaurants or parking lots. This can significantly enhance client loyalty.
Competitive Advantage
Location-based applications enable businesses to analyze user behavioral patterns during peak hours to send relevant push notifications about on-demand products/services.
Additionally, businesses can offer rewards or bonuses based on the user’s frequency of place visits, which will improve customer loyalty.
Key Features of a Location-Based App
If you are interested in geolocation app development, you have to consider its overall features for your further optimization of marketing strategies.
Real-Time GPS Tracking
Real-time GPS tracking is a pillar of any location-based application, as it focuses on analyzing the real-time place of the person or vehicle to check its actual movement and direction in order to provide real-time updates.
This location-based application feature is a must for the healthcare industry as it is helpful for ambulance services in terms of route analysis and movement.
The food delivery industry operates real-time GPS tracking by enabling clients to track their orders.
Gain insights into how to develop a GPS-tracking application.
Geofencing
Geofencing is a feature that enables the location-based platform to create a visual boundary by applying GPS. As an outcome, when the client enters a specific area, they start receiving notifications about offers, discounts, etc.
Walmart, the e-commerce industry representative, applies geofencing by sending users discounts when they enter a specific location.
Hospitality and tourism industries use geofencing to send promotions to tourists when they arrive in the new city.
Push Notifications Based on Location
The push notifications feature represents sending clients messages based on their real-time location.
Retail industry organizations like McDonald’s utilize push notifications to send users short info about deals if they are nearby.
The fintech industry relies on push notifications, and users can receive info about the nearest ATM place when they enter a specific area.
Route Optimization
Route optimization focuses on the algorithms in order to optimize the overall route and economize time.
The logistics industry applies route optimization to track and make relevant corrections in routes to strive for the fastest parcel delivery.
The grocery industry and delivery service, in particular, utilize route optimization to ensure time optimization when delivering the client’s order.
Interested in grocery app types, features, and development. Just click and read!
Choose the Right Tech Stack
Choosing the appropriate technology stack is a must for building location-based apps in order to ensure their optimized performance, safety, and scalability. Let’s break down the core technological elements:
Backend
The backend is the backbone of the geolocation app development, as it covers aspects like API management, user information storage, and location data processing.
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When it comes to performance optimization, you can consider Node.js, Python (FastAPI), and Go, as they support real-time tracking and efficient data analysis and deliver efficient performance.
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On the other hand, Microservices with Kubernetes and AWS Lambda can be helpful in scalability optimization as they handle loads of continuous location updates.
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Location-based information is highly sensitive and requires advanced encryption, so implementing AES-256 for data at rest, and TLS 1.3 for info in transit can boost its security.
Frontend
Frontend is about user experience so that the client can view and interact with the maps and application’s features. React Native and Flutter can be utilized to improve UI performance.
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To be specific, React Native can be applied to cross-platform development as it covers iOS and Android within a single codebase.
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Flutter can be applied to deliver a native-like experience on the mentioned platforms.
Database
The databases store user data, saved places, and location history, so they have to handle real-time queries and proceed with a large amount of spatial data.
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PostgreSQL can be utilized to proceed with geospatial data.
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MongoDB is about storing dynamic data.
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Firebase Firestore can be applied to instant synchronization of users’ location across devices.
APIs
APIs play a central role in supporting the location-based app’s mapping, geolocation, navigation, and geofencing functions.
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Google Maps API
Google Maps API is best suited for geocoding and navigation. Its major features include Google Maps SDK for Android, iOS, and Web for interactive maps; directions API to ensure real-time routing; and geocoding APIs to convert user addresses into coordinates.
This API type is mostly suited for real-time mapping navigation and offers moderate customization. Google Maps API is expensive and offers basic compute routes for $5 per 1000 requests, while advanced compute routes cost around $10 per the same request number.
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MapBox API
MapBox API offers a freemium model and is suitable for startups. This alternative to Google Maps offers high customization and custom map styling. MapBox API offers custom map navigation and offline map functionality. The price starts from around $0.50 per 1000 requests.
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OpenStreetMap
OpenStreetMap is a free alternative to the commercial APIs. It's fully customizable and open-source, but it is slower to function than Google Maps.
Step-by-Step Guide to Building a Location-Based App
So, how to make a location-based app? That’s a very good question since we’ve already analyzed its features and technology stack. Here is a list of steps you should consider when developing one.
Market Research
First of all, you have to conduct a thorough marketing analysis that will cover a thorough analysis of your competitors, including their strengths and weaknesses, and analyze what opportunities they provide their clients with.
Then, focus on your business needs, USP, and target audience to define what objectives your platform will cover. This is essential as it will affect the selection of features your application will contain.
Finally, identify the top features required for your location-based app development. Pay attention to the industry you work in as it impacts the features’ priority level. If you run a store and wanna make it recognizable, you may prioritize applying geofencing to send discounts or coupons if a customer walks into your store area.
UX/UI Design
The second of the required steps to create a location-based app is covering the UI/UX design. This stage matters because user experience and interface are about understanding the interdependence between customer behavior and interaction with mapping and navigation.
Below is the list of UX/UI design-relevant steps to consider:
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Interaction architecture and user flow: to understand the user’s navigation through the application.
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Wireframing: to present the basic black-and-white sketches of the future screens.
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Prototyping: to present the visualization of user flow and interaction with map-relevant features.
MVP Development (Optional)
MVP, or minimum viable product, is an optional yet essential step as it covers the basic ‘draft’ version of the further location-based application. MVP includes the platform’s core features, such as user location detection, interactive maps, and basic navigation. The purpose of its development is to validate the application’s idea prior to substantial investment and conduct early testing based on real user feedback.
Development
The development phase represents the practical transformation of the project idea into coding. The major point we’ve already discussed is choosing the technology stack to correspond to the needs and priorities of your business. Then, the developmental process will take the following steps:
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Frontend Development
Frontend development is based on crafting the UI components and the integration of the real-time location services. Frontend will cover the elements of user location detection, home screen with interactive map, etc.
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Backend Development
Backend development is about ensuring data storage, user authentication, real-time location tracking, and server-side logic. To be more specific, the backend step will cover the construct aspects like user authentication, storage and user location data retrieval, API integration, and implementing the real-time database.
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Implementing Location-Based App’s Core Feature
This stage requires your scrutiny attention as it relates to the practical implementation of the location services and real-time tracking through integrating the APIs you select. If you opt for supporting real-time location sharing you can integrate Firebase Realtime Database to keep live location updates. Launch geofencing to track actions when the individual enters or leaves an area of interest.
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Integrating Security Measures
Implemeting security measures is a must to build a geolocation app, as it must keep clients’ data safe by preventing leakages or cyberthreats. The developers can utilize the secure authentication methods, like Multi-Factor Authentication, as an additional security layer or implement role-based access control to restrict admin and user permissions to access location data.
Testing
We’ve almost reached the finish line, as testing is the penultimate stage of location-based platform creation. This step matters as it checks the security, functioning, and features alignment with your initial business needs. Here are the following testing procedures:
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Unit Testing
Unit testing checks the functionality of individual features, such as location retrieval.
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UI Testing
This testing type will check the correctness of the map, search, and buttons’ work in the device.
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Security Testing
Security testing assesses the encryption of user location data.
Marketing Launch & Maintenance
After all testing procedures completed, it’s time to upload your location-based app to Google Play or App Store. Then, the development team will motinor the functionality of the application by making updates, fixing bugs, and analyzing clients’ feedback for further improvements.
Now you know how to create a location-based app, so here’s more to be. Let’s clarify how you can make money from it.
Monetization Strategies for Location-Based Apps
Location tracking app development represents not only the effective opportunity to promote your business services, boost client revenue, and intensify brand recognition but also serves as an additional source of income based on the availability of monetization strategies. Interested? Keep reading.
Affiliate Marketing
The first monetization strategy you can benefit from is affiliated marketing. You can collaborate, for instance, with hotel institutions or tourism agencies and receive a percentage by serving as a third-party promoter of their services.
On-Demand Services
Another monetization element you can benefit from is earning from a partnership with on-demand services like taxis or food delivery. Just take your commission from any relevant-based transactions.
You can consider task-based monetization as a potential opportunity based on on-demand service provision. For instance, you can send users push notifications about local freelance tourist guides and then receive your commission.
Commissions
We’ve talked about commissions previously, denoting it to be one of the leading monetization strategies for location-based applications. Let’s clarify how it actually works. For instance, the client books a table at the restaurant so that you can charge a commission for this activity, quite a thought-provoking monetization to build a location-based app? Here’s more to be.
Location-Based Advertising
You can apply a beacon technology as an element of location-based advertising. Beacon technology detects the user’s real-time location based on the wireless transmitters, enabling you to send users discounts or personalized coupons when they are in a physical place, like a department store.
Subscription-Based Monetization
Freemium and Premium subscription models are at hand. One of the potential cases of implementation is that you can offer geolocation functions as a side opportunity from your main business. For instance, you can offer basic geolocation functions for free, which will require a subscription. But, if the client prefers more advanced navigation, like offline working maps, just apply the premium subscription.
Sponsored Promotions
The identified monetization strategy can suit those locations that want to be on top. For instance, a restaurant has the intent to increase conversion and improve customer recognition so they can pay the location-based app provider to be promoted.
How to Reduce Development Costs Without Sacrificing Quality?
When you aim to create a location-based service app, you have to be prepared for the project complexity that will shape its ultimate price.
For instance, the basic application, which may comprise MVP, map integration, and standard tracking, might cost from $20,000 to $50,000+.
The project of middle-range complexity, which may include the real-time tracking and geofencing might range in price from $50,000 to $150,000+.
The advanced version that can comprise AI-driven navigation, robust analytics, and AR tools may cost from $150,000 - $250,000+.
Indeed, this cost differentiation can provide you with an approximate price range, but if you want to know how to make a geolocation app cost-effective without compromising its quality, then the following development tips are for you.
Tip #1: MVP instead of the full-fledged product
How to build a GPS app? Start with MVP instead of the fully-fledged application. It is essential for you to validate your initial idea, implement the standard functionalities, and gain real feedback from the actual users.
Tip #2: Apply premade templates for UX/UI
You can apply Figma-based ready-made UI kits, instead of the customized and brand-like designs to cut the investment expenses and economize the development time.
Tip #3: Select the tech stack
You might choose cross-platform application development as, due to the single codebase, it can ensure the simultaneous coverage of the iOS and Android location-based functions without compromising their efficiency.
Tip #4: Choose free API
You can consider applying free APIs like OpenStreetMap, which may be slower in functionality than Google Maps but is customizable and open-source.
Tip #5: Switch to Automated Testing
Why not regarding automated testing instead of applying manual QA? You can utilize Appium to facilitate the automated testing of cross-platform mobile location-based applications.
Tip #6: Consider outsourcing
How to create a location-based app that is practical but cost-effective? That’s a good question. Have you considered outsourcing? This point matters because, in the US, you’ll have to pay from $100 to $180 regarding the developer’s skills while hiring a Ukrainian professional might pay for $35 to $55 per hour.
Wanna know more about outsourcing and how to integrate it into your business? Just read the article!
Challenges in Developing a Location-Based App & How to Overcome Them
Location based services in mobile application development bring promising opportunities for both businesses and clients as coupons and discount-based push notifications can motivate clients to use them while the businesses boost sales. Nevertheless, the dark side of this so-called win-win strategy is that the development of this application type encounters a number of challenges you can not ignore.
Client’s Consent on Access to Their Location Data
Prior to providing the clients with discounts, coupons, and push notifications, you have to receive a client’s consent to obtain their location data. From this point, even if they agree to share their real-time place, you will have to guarantee a safe use of their location data preventing any misuse or leakage.
Solution
You have to ensure compliance with the General Data Protection Regulation (GDPR), as it requires providing clients with clear and concise privacy policies and guaranteeing their data are securely stored to prevent any informational leakage.
You have to provide the client with full information about why and how you are going to proceed with their data. Additionally, you have to elucidate the set of actions the client should take if they want to refuse or stop sharing data.
Increased Battery Consumption
Based on the intensified dependency on the GPS continuous updates, the location-based application consumes too much of the user’s battery, leading to a relatively fast energy shortage.
Solution
Why not consider geofencing instead of GPS? Geofencing will activate only if the user enters a specific area. Another option is to slow down the update time of GPS notifications, such as 5-10-minute update intervals.
Privacy Concerns
GPS location app development may become a beneficial opportunity for business promotion, but you’ll have to brace yourself against challenges regarding clients’ data privacy concerns. The identified type of platforms detect, collect, and transmit the client’s information, making it vulnerable to potential cyber exposure. The following is an example of a privacy-related GPS mobile app development concern:
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MitM Attack
A Man-in-the-Middle attack is a form of cyber threat when by exploiting weak web-based protocols, the attacker inserts themselves between the entities. Here’s an example.
The client might use the public, weakly secured WiFi, which leads to the Man-in-the-Middle cyberattack. So, if they give consent to disclosing their location information to a location-based application and decide to pay for the personalized coupon item, they are at risk of exposing their credentials or clicking the false store-imitating link.
Solution
You can consider implementing TLS 1.3 as it ensures strong data encryption during the transit by minimizing the risks of the attacker’s interception.
Advanced Security Considerations
In the previous section, we’ve dropped a hint on the essence of privacy concern, which is directly intertwined with the security considerations that location-based mobile app development has to cover. Nevertheless, a lot of companies do not prioritize advanced security measures but tend to keep basic pro-safety measures. Let’s dive into this theme.
Safe Data Storage
Kromtech discovered that the weak protective measures of Amazon’s S3 cloud storage service made more than 540,000 GPS tracker devices’ data freely visible to the public audience. The leakage provoked by the insufficient security strategies disclosed IMEI numbers, usernames, trackers’ emails, and vehicles’ license plates.
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To ensure safe GPS-relevant data storage it is possible to implement intensified encryption measures like AES-256 encryption for info at rest and TLS 1.3 for encrypting data in transmission.
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Utilize blockchain to ensure location data integrity as it makes data immutable by preventing tampering.
User Data Protection
Although the location-based applications have to provide the clients with guide on how to cancel sharing their data, some platforms that operate with personalized ads might keep sharing clients’ place information with data brokers, like Gravy Analytics, which experienced a massive hacker attack.
Russian cybercrime forum XSS reported on hacking Gravy, exposing screenshots and 17 terabytes of information, requiring us to think about protective measures to circumvent Gravy’s experience.
Here are some preventive measures to consider during location-based app development:
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You should secure cloud storage and database access in order to prevent unauthorized access. For this purpose, you can apply cloud-native security elements like AWS KMS or Azure Security Center. Restriction of database access with Role-Based Access Control might intensify user data protection.
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Another option to secure your clients’ geolocation data is to implement AI-powered intrusion detection with continuous threat monitoring. This variant is central in tracking real-time hacking attempts. Geofencing can be helpful in restricting access from suspicious regions, while AI-based monitoring can detect unusual access patterns.
Agilie Can Help to Build a Location-Based App
Agilie is a European IT outsourcing organization that crafts unique from-scratch digital solutions per the interests of versatile industries, such as fintech, logistics, e-commece, real estate, health care, etc. Aspired for time efficiency and expertise we prioritize in-time project delivery by aligning with SDLC development methodologies.
Agilie can cover the full spectrum of the location-based development process as our services include:
Gain insights into Agilie’s expertise with our success stories.
Conclusion
The article analyzed the process of location-based app development, its features, monetization strategies, and challenges. You don’t have to forget that regardless of benefits like client data analysis and intensified personalization in user experience, this application type requires keeping an eye on safety measures to ensure the users’ location data with secure storage. Hence, geolocation app developing is quite a complex task, which requires selecting a decent team of developers to make it secure and scalable.
