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I started playing it when it came out, but lost interest. Plus it was a battery hog to me & my poor old Galaxy Nexus needed all the battery it could spare :/
Yes, you have to go to the destination, it uses your GPS location to confirm your location. It trys to give you destinations near your location. I too tried it for a while, but I have life and that was not part of it.
Does seem like it would be a battery pig for any phone, but if you are in your car it should be plugged in and you'd be fine.