Of course google has been doing this for years, but by using the WiFi access point names that your phone sees and the relative signal strengths.
A “defcon” talk described it in detail and how whenever you access the google browser (chrome) on your phone this information is uploaded to google. Google pinpoints you to within 50 or 15 meters.
No use of location services at all, just wifi. Google has mapped out every wifi name in the world and now has no need of GPS. Those cars doing street view also collect all the WiFi names and signal strengths. They also capture WiFi packets in countries where they have not been banned to do so.