Many people turn on location services most of the time. Eg: Google pay in India works only when GPS is on.
The traffic data is obtained by tracking the individuals. With the speed of movement and number of similar individuals in the location with the spacing between each individuals, we can get information like:
Are they in a car or bus or walking
How congested is the traffic is
1 Yes they use satellite images for maps and telecom locations for accurate locations of the subjects.
2 Since Google has most of the data and everything is easily accessible (free), there isn’t much competition.
3 most people has android phones with location services turned on and other publicly available info with people sharing the information too. Like review and operating times are shared by fellow users.
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