Exactly how accurate is IP Geolocation?

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I'm setting up a iPhone tracking system for my friends, so they can submit their location to my website by their iPhone, anywhere, anytime - by WiFi or cellular data.

The website will use Google Maps for their coordination's so that my other friends can track where they are, however, it is the accuracy of the IP to coordinates to Google Maps is what I'm concerned about, exactly how accurate is it to use Google Maps that would track down the locations by an IP address?

I was thinking about 95%, but this was tested in a village which was quite fairly accurate, but what happens if it was in a city? Would this cause unaccurate locations?

Any kind help appreciated.

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