I have shared location on maps and it only reports back sometimes, like you might see that the last reported location is 20 minutes old or something. Also I don't think they only use GPS these days, I think its that, but also local wireless networks, and location data based on your daily habits (i.e. you go to work every day, so if we see your work wifi, you're probably at work). All of this put together doesn't really kill battery life anymore.
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