Neither should Uber. I never needed to show ID to hail a cab. You just stood at the corner and waived your arm. Are we talking about Uber drivers here? That makes some sense. But passengers? (I don't know, I don't use Uber).
Drivers are background checked but honestly they probably get more abuse and attacks than passengers. After all there's no accountability on riders but there is accountability on the drivers.
Because you need a valid driver's license to drive, so if I'm contracting you to do any amount of driving, an extremely standard practice is to see if your license is good.