GPS is most accurate positioning system we have on the phone. However it
comes with price, here are some of the bad features of GPS: drains
battery, does not work indoors, takes long to get initial location when
used first time (or long after last use)

Therefore number of supporting used to leverage those "bad" features of GPS, 
however those other technologies come at the price.
Namely network based location (wifi, GSM cells) is faster and less power hungry 
than GPS, but it has lot worse accuracy.

HERE location service uses network based location in order to show user coarse 
location quickly, while GPS is working on the background to acquire precise 
location. This can be observer in here maps when actual circle representing 
accuracy shrinks in the moment GPS location is acquired.
In short we get between 1m to 15m for GPS location, based on number of visible 
satellites.
but 25m to 30km! accuracy for network based location. 30km is extreme with no 
visible wifi and only one visible GSM cell tower. Still valid example.

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https://bugs.launchpad.net/bugs/1421623

Title:
  Welcome wizard claims GPS is less accurate than wifi based location

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