Why would I like to know users’ home and work location?

Knowing your users' home and work location can be beneficial. It allows you to send relevant location based messages at the right time and at the right place. For example, a food delivery app can send a push notification to someone who just arrived back home after work. Similarly, dating apps can pause notifications for those at work to avoid inappropriate messages popping in a professional environment.

Evidently you have to be careful with data privacy laws, but as long as you are not selling or communicating the data collected there are no issues with collecting a user's home and work location. At the end of the day, everything is done to benefit them and offer hyper-personalization.