This thing's fuckin creepy. it uses the camera and mic to get my location as well. The tech sounds rad, but for privacy i wouldn't touch this thing with a 10 ft pole.
I think the techcrunch article (linked on one of the comments) mentioned that if they can't get a gps/wifi signal they look at lighting (camera) and sound (mic) to determine if people are in the same location. Neat use of the technology but - yes, a bit creepy.