GPS by itself generally does a pretty good job at pinpointing your location, but it isn’t perfect. Sometimes, you’ll get a good GPS satellite signal, but other times, your phone’s GPS won’t be able to show you exactly where you are.
Android can bolster your GPS capabilities by using nearby Wi-Fi access points and cell towers to better triangulate your location, and with Android Marshmallow, you can use Bluetooth to improve your location accuracy further still.