Your device being opted-in to background location (“Always Allow” or something similar when you’re prompted by an app, “while in use” or foreground location permissions changes this behavior and only collects location data while the app is active on your screen) allows google to collect your location data even while you’re not using google maps.
Historical foot traffic data provides a baseline “busy-ness” level and they probably incorporate some degree of live data analysis too to provide current snapshots of “busy-ness”.
I don’t work for google so this could be slightly wrong but that’s generally how foot traffic data analysis works.
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