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Location-based mobile apps - benefits and app development cost you need to know

Customized location-based mobile applications can offer numerous benefits to your business. Here we highlight a few benefits along with an estimation of development cost.

Location-based mobile apps - benefits and app development cost you need to know

Thursday June 21, 2018,

7 min Read

Be it a business trip or leisure travel, people tend to find places where delicious food is served as well as places that offer some brain food like museums, galleries, etc. There, a location-based mobile app comes into play. Such apps make the traveler’s life easier through offering a real-time guidance about nearby places.

Image Source: cdnsol.com

Image Source: cdnsol.com

Be it a business trip or leisure travel, people tend to find places where delicious food is served as well as places that offer some brain food like museums, galleries, etc. There, a location-based mobile app comes into play. Such apps make the traveler’s life easier through offering a real-time guidance about nearby places.

SMBs (Small and Mid-sized Businesses) have started embracing the location-based mobile app development concept to give their consumers immediate access to product or service information, events, reviews, and the like on the basis of their locations. Location mobile apps give an edge to companies through enabling them to reach out the potential customers in close proximity. Brick-and-mortar retailers and other customer-oriented businesses can make the most of this type of apps.

Benefits of location-based mobile apps for your business:

Relevant offers at the real time

Business owners can synchronize location-based apps with their company systems to provide their customers relevant information about promotional offers at the right time. Such apps help companies connect with the targeted audience and get the benefits of localization. Also, companies can gather valuable data about their customers’ behavior and make the marketing plan on that basis.

Personalized experience

Customized location-based mobile apps can act as a powerful mobile advertising tool. You can `send discount offers, coupons, and other marketing information through push notifications as and when your customers come in the vicinity of your establishment. For example, a person walks down the road and receives a message about a close-out sale in your store. It always gives a personalized experience and the customers would like it.

Better navigation and virtual tour

Hospitals can offer virtual tour along with a better navigation through such apps. Businesses can also utilize Augmented Reality (AR) concept through integrating it with location mobile apps. It is the most impressive and interesting use of geo-location capabilities. By superimposing virtual elements on real-world objects, businesses can give their customers more interactive and lifelike experience.

Shopping and searching suggestions

Companies can analyze the user’s behavior through the data available and provide shopping suggestions. Also, you can offer individualized discounts to users after getting the clear picture of the user’s shopping pattern. Also, people tend to search for everything using the mobile, and location-based apps can help companies to showcase their products or brands as searching for suggestions on a local basis.

Prompt and precise services

From Uber to Yelp, location-based apps help companies deliver prompt services with the utmost accuracy. GPS technology makes it possible to find the exact location of your customers and you can send your products or brands with precision in less time. This is one of the most important benefits that increase trust among your customers.

Types of location-based mobile apps:

These days, location-based services mobile app trend has been mainstreamed in the corporate world. The concept has opened new doors for marketing activities for startups and established businesses alike. Today, we have different types of such apps depending on the different business requirements.

Here are the popular types of location-based apps:

Social apps- Social media users like to attach geo-tags to their photos and videos just to inform their friends about their activities. The geo-tags include the address of a restaurant, a gym, a nightclub, a resort, and the like. Social media users tend to send the location as an answer to the question “Where are you?”. Geo-social apps can offer both location-based services and social networking facility to the users.

On-demand apps - We cannot imagine any on-demand apps without a location feature. Be it a food ordering app or a taxi booking app, geo-location is the must-have feature. Businesses can provide effective on-demand services while enhancing customer loyalty through such apps.

Health and fitness apps- Health and fitness sector is thriving as more people become health-conscious worldwide. The location-based health and fitness apps can easily track the outdoor sporting activities including cycling, swimming, etc. The GPS data enables the users to analyze their daily fitness activities and plan workouts.

Navigation and mapping apps- Google Maps has set new milestones of popularity. Navigation and mapping applications have a wide range of useful features and users can leverage their benefits. They can also suggest different routes and facilitate the users with reviews while providing them with an exciting experience.

Dating apps- Most of the popular dating apps assist their users to find dates in nearby areas with a location feature. Users find it easy to connect with people of similar interest in a neighborhood with location-based dating apps.

Travel apps- Traveling apps can seamlessly work through a location feature. People tend to decide the places they want to visit in advance, and travel apps can help them with place recommendations and proper guidance about the route. Be it a dedicated travel app or a community platform, the traveling industry always bank on location-based applications.

E-Commerce apps- How about providing shipping and delivery information to your customers for their orders? E-Commerce apps with a geo-location feature do it for your business. Also, retailers can track the location of their customers to offer them improved services.

In a nutshell, almost all categories of apps use location feature in one or the other way, and therefore, it is fair to mention that location-based apps are going to dominate the world.

Finally comes the costing part. The location-based application cost largely depends on its features and time it takes to develop. Let us go through the stages involved in the development process to get an estimation of cost.

How much does it cost to build a location-based app?

Image Source: themindstudios.com

Image Source: themindstudios.com

As mentioned above, features and duration are the major factors that decide the app’s cost. Another factor is the platform selection. There are a few differences in the development processes of Android and iOS. Let us go through the development process for developing a location-based application:

Ideation- This is an initial phase of app development. The concept is discussed, researched, and prototypes are developed in this phase. If you want to hire mobile app developers for developing a customized location-based app, then engagement models are also signed at this stage. The ideation phase approximately takes 80 hours, but it depends on the complexity of apps.

Design- As the name suggests, your app is designed in this phase. Designers create a custom UI as per your requirements. This is a longer phase and takes at least 120 hours. The duration is largely affected by the app’s scope.

Development- In this third and key phase, the duration depends on the platform. For example, Android app development takes almost 520 hours for an MVP (Model View Presenter) version, whereas iOS app development requires approximately 400 hours. Here is a comparison of duration between Android and iOS development phases:


We also need to add duration for a back-end development that includes the server part. The process can last up to 320 hours and ensures a seamless performance of your native mobile application.

Testing- Performance testing is a key factor before deployment. Here we have a big variation of hours depending on the features and functionality of an app.

Hourly rates also vary depending on the countries from where you hire app developers. For example, the US and Canada-based developers charge the highest hourly rates up to $168, whereas Indian app developers charge the least hourly rates up to $30.

Considering all these aspects, we can estimate that a location-based app can be developed in a range of $15000 to $25000 for Android and around $12000 to $22000 for iOS platform.

That’s not all. You need to put some money aside for additional support and maintenance for an app after deployment. It is better to opt for a periodic modification of an app to meet the user’s changing requirements.


A feature-rich location-based mobile application can serve many business objectives and help you increase sales by enhancing customers services. It helps you gain the trust of customers and build a brand.