Not sure about Android, but if you're on iOS you have the choice to disable "full location access". In case it's needed to run certain feature in the app, you can choose the "Allow while using" option.
I do that will all the apps that require location access: local food delivery, cab services, vehicle rental and what not.
We can and for most apps I do this too. But some apps, like this one, require the location or they won't even start. Also at least on android(which also has fine-grained permissions now), this app specifically requires on-going(background?) location access.
Recently this has also been made mandatory for employees, public and private. So organizations have to ensure all employees have this app on their smartphones. We will see how much this is enforced.
My Android device allows for completely disabling location access (regardless of whether the app requires it) or for allowing access while the app is in use, as you mentioned. I'm never sure if these features are OEM additions or features in standard/AOSP Android versions, so I guess if you're using an Android device YMMV.
I do that will all the apps that require location access: local food delivery, cab services, vehicle rental and what not.