Wheels reduce friction because the point where the wheel contacts the road does not move relative to the road. At any particular time, the point of contact is stationary on the road, as the wheel's contact point is moving backwards at the same speed as the car is moving forwards.
I had a great opportunity to check this empirically some years ago. I was driving behind a van that was trailing a good 10m of thin rope on the ground. By moving slightly left to right, I was able to get the front wheel of my car to pass over the rope. Instantly the rope snapped. It did that because the section of the rope between the ground and my tire suddenly was stationary, whereas the rest of the rope was moving at some 60 km/h with the van.
Of course, as Timeless points out, there has to be friction between the wheel and the road. If there wasn't you could not accelerate, decelerate or change direction. To test that, try driving on ice, where the friction is much reduced.
However, if you are driving at a constant speed with ideal wheels (a good example is railway wheels on a track) the friction is far lower than if you had to drag the car along without wheels. Good tires are designed to give low friction when driving straight ahead at constant speed, but also provide high friction when changing speed or direction.