With the rapid development of smart city, location-based services (LBS for short) have become an important part of intelligent transportation which is the basic infrastructure of smart city. However, when users enjoy LBS, they have to send their real time location to location service provider, which allows users to face the risk of release location privacy at any time. In order to protect the location privacy, a privacy protection model based digital envelope and dummies is proposed. We use distributed peer to peer structure, which does not require the third-part anonymous server, to improve the efficiency of the location communication and set different location privacy protection methods for single point query and track query in order to adapt the diversity for different environment of location privacy protection. With the combination of digital envelope and false location technology, we add noise to basic location information to improve the security of location data. The experiments results showed that the proposed scheme is efficient, and that the location privacy can be also protected.