After Facebook and Twitter location-based service seems to be more and more popular. In fact location-based service has a long history. It can be dated back to 1989, when the infrared Active Badge system was established. After that Microsoft, MIT and Intel all have released the similar location system. And with the development of GPS location technology and telecommunication this service became more popular. And recently with the popularity of smart mobile phones and mobile internet the location-based service grows quickly and has many other functions. In the field of the mobile internet many companies provide this service, including Google latitude and foursquare.com.
We all know that the terminals of the location-based service are phones, especially the smart phones. And only the large popularity rate of the smart phones can make the location-based service have commercial potential. And the popularity of iPhone and other smart phones with Android system makes this key factor available. So there are enough users that can ensure the location-based service can make a profit.
As of business model the location-based service can be combined with the traditional businesses such as shops and restaurants. Also it can cooperate with the new emerging group purchase sites and other e-business services.
Also the features of opening and sharing are key factors to the location-based service. And this is similar with the SNS and micro blog.