Similar issues here with iPhone 7, iOS 10.1.1, A1660.
Issues while navigating with Maps and Google Maps. While driving, the maps suddenly stops giving vocal and visual feedback as my current location jumps way off. Didn't know if it was due to my iPhone 7 or iOS 10.
So did a number of troubleshooting, as suggested by Apple Care:
1. Simple rebooting - volume down+power button. No luck.
2. Resetting network and privacy settings. No luck.
3. Diagnostics with Apple - which the "good news" was that GPS was working. However, my problem wasn't solved.
3. So did a complete reboot to factory default (no restoration).
4. Then installed Google Maps on a clean phone to see if it'll work - no luck also.
So they finally advised I get my device checked at an Apple Service Centre.
Since I live in Bangkok and bought my iPhone from Hong Kong, I can't get it replaced or checked here, some weird warranty issue that doesn't cover Thailand (only covered if you buy your phone in Thailand).
So, I'm stuck with my (faulty?) phone till my next trip to Hong Kong, in March 2017. Till then hoping the next iOS update somehow resolves the issue.