Google is reportedly set to reveal a new feature in Android called Nearby. According to Android Police, Nearby is an upcoming feature that is an extension of the location services within Android. The end goal to provide increased accuracy for your smartphone to know your exact location and to know what's around it.
As an extension of the location services, Nearby will use Bluetooth and audio clues to pinpoint where you are. This information will be useful to Nearby so that it can share your location with other people and other devices. And if you've given Nearby permission, it can act on that location info on your behalf.
We're not sure yet how (or if) third-party developers can use it, but if they can apps will be able to serve you content based on your proximity to objects and specific locations. We'll hopefully learn more about Nearby at Google I/O 2014.
Source: Android Police