1) "an average speed of 35mph in the city" is not going to happen. In Manhattan that's 15 MPH. In midtown Manhattan it's 1.7 MPH. So 10 MPH on average would be more realistic.
2) You forgot gas
3) You forgot tickets
4) You forgot car insurance
5) You forgot car maintenance
6) You forgot car accidents and the cost of replacement
7) You forgot tolls
8) You forgot lawsuit costs
9) You forgot parking costs (and time to drive from and to parking)
10) You forgot the costs of the hiring process (try hiring 10 drivers in 10 days)
11) You forgot the cost of routing of all these cars (you have to organize 10,000 cars somehow)
12) Your guess of $40,000/car for design, approval, production of a specialized car is way off.
13) You forgot server costs (stitching the images)
14) You forgot storage costs (storing, transferring) millions of photos.
15) You forgot IT and management costs to support all this shit. $8M will buy you a few executives in charge of this project.
16) Your estimate of $10/hr for the driver salary is way off (assuming it's just a driver, and not a trained technician). Average salary of a cab drive in NYC is $25/hr. Chicago - $17/hr. Los Angeles - $17.5/hr. That's not counting the benefits - health insurance, social security, etc.