"may collect and process information about your actual location"
For example, Google Maps can centre the maps view on your current location. Learn more. If you use Google Maps for Mobile, we use GPS, Wi-Fi and mobile phone tower signals to determine your location. Learn more.
When you're near a bus stop or a train station, Google Now can tell you which buses or trains will arrive next.
Location History allows Google to store a history of your location data from all devices where you are logged into your Google Account and have enabled Location Reporting. Location History and Location Reporting data may be used by any Google app or service. For example, Google Maps may use it to improve your search results based on the places that you’ve been. Learn more.