GPS uses the satellites explicitly for guiding you in whichever direction you need to go. I believe it can see if there are areas that are over saturated with cars and then equates that to an accident/traffic.
Time for distance travelled uses simple math.
Speed = Time x Distance
Time = Speed / Distance
Distance = Speed / Time
If you are looking for distance travelled, the GPS relies on the satellite to tell it how fast you are travelling and then calculate using the above formula to “estimate” how much longer it’s going to take for you to get to your destination.
Also the Waze app uses human intervention to tell it if something happens. For example, if there’s an accident, people usually pin the location and say there’s an accident here. Once the accident clears up, people update it to say that the accident cleared up etc.
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