That's what they thought about Google Video, but then Google decided to buy Youtube. Technical advantage (which Google has in strides) does not always translate to business advantage (which Uber has done remarkably well for itself).
I think you’re right here. You can recreate the technical aspects of YouTube relatively easily. You can’t recreate the brand.
Just because it’s big doesn’t mean Google will inevitably succeed. Look at Google+, Allo, Duo etc etc. to my mind there’s no guarantee a Google rideshare app would capture mindshare.
YT was relatively cheap and much stronger network effects. Uber does not.
Google is so much more integrated in to people's lives than 15+ years ago.
Google Maps + Waymo or "Google Taxi" would have millions of customers immediately.
What Google did to Yelp is what might happen to Uber. I think the main point thing stopping is what others have pointed out. Is it worth the reputation? Instead of running their own service just take a nice cut from Uber and let them deal with bad headlines. Especially when the headlines will read Uber "fires" poor single parent uber drivers in favor of robot cars.