The application gets the geolocation data of the phone and sends it to your account. On the "Location" tab you can see this data.
If the "Location service" on the phone is disable or the phone can't obtain its location, you will see the most recent location data of the device if there's any.
Location tracking operates in Passive mode, which means that the application does not activate Location service on the phone by itself, but instead uses most actual location which is obtained by the Android system on the phone.