The scopes shell plugin does cache the GeoIP location, yes. It also has
a timeout, and is refreshed periodically.

As soon as your device acquires a proper GPS lock, however, the scopes
shell plugin immediately prefers the true GPS lock.

However, the location service does not provide any high level location
information (country, region, city), only numerical
information(latitude, longitude, altitude), so GeoIP is the only way we
can it. This means that if a scope asks for your city, it can only be as
accurate as your GeoIP information.

Really I'd like to see the location service providing high level
location information, too. But last time I raised this, the idea was
resisted.

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https://bugs.launchpad.net/bugs/1481240

Title:
  Can't get correct location information before use other GPS apps

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