This is achievable with geolocation based on IP address, which is how it works on, e.g. a desktop web browser.
Of course, personally if I wanted to search for nearby bakeries on my phone I'd have just opened the google maps app....
Not much use if you want to search bakery's.
I suspect that isn't all just one big coincidence.
A cable or telephone company has generalized coverage measured in states; some of them organize their network and customer IPs by small geographies, but sometimes all of southern california is in a single pool of IPs.
Maybe it's more effective in places like the US.