How are they vetting drivers? I wouldn't trust a driver if all they had to do to qualify is download the Waze app.
It sounds like Google might be tapping into the strong community that exists rather than starting something new.
Does your resume include any position besides "old, disgruntled, unhappy, friendless programmer"?
It's extremely popular nonetheless.
They have the ability, but whether they actually violate everyone's privacy is hopefully a theoretical matter.
Most people are decent. If they are giving you a ride in their private car, then consider that they are taking a chance on you as well.