It apparently needs the user to move to get a position lock.
This will not work well with the typical use case: user is in a shopping mall, needs to go to the bathroom, wonders where the closest one is and where he is, stops walking, opens his phone and starts the app.
Expected outcome: the app says "toilets are 50 meters to the right".
If the app now tells the user "I have no idea where you are. Please walk in a random direction in a straight line for 20 meters and I will try to find out, then tell you where you are and where the closest toilets are, which means that you might have walked in the wrong direction to begin with", the user is not really happy.