That is correct, currently the tile needs the app running in the background. Which actually a lot of people have. Funny thing is a friend was traveling through Europe so I loaned them a tile to put in their backpack to track if lost. I found that popular travel spots like airports and town squares around Europe worked just fine. It was harder when traveling down the highway for example as far less people would have tile running on their phone in the background.

Like I said, I hope Google acquires Tile and integrates it like Apple did with the airtag. But instead it sounds like google is working on their own tracking chip, and will be releasing it as soon as Apple integrates their side (so both android and apple will alert users if someone else’s tags are tracking them)