As a daycare provider I have had parents come to me for both reasons. I had a teacher that worked in the area that wanted her child close by incase she was needed during the day. The downside was that she had to be in traffic with her child coming back and forth for 40 minutes. Other families choose someone near the child's home with the idea of them growing up in the neighbourhood - local parks, local friends, maybe even staying for school. The downside is if the child is sick the parent can't just pop over and get them. Makes for a longer daycare day for the child but also more time for them to play rather than stuffed in a hot car. You always have to run the risk of traffic slowdowns and such that makes that commute even longer and no fun for a child in a carseat that would rather be playing or eating.