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The facility to record location in the background is not a violation of Apple's terms and conditions, as it is required by things like hiking or cycling record programs.

It does seem worrying why they wanted to do it in their case. It seems that they actually wanted to know the full details of where someone went. For example if I took a Uber to the university where I work do they need to know which particular building I end up in. More worrying is that in a country like Australia where services of a certain nature are legal, someone may not want that recorded by Uber, so may pick a nearby address.

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