London Mayor Risks $7.8 Million a Year on Cycle-Hire Program

Mayor Boris Johnson is spending 140 million pounds ($218 million) to encourage more Londoners to get on two wheels with a cycle-hire program that sprinkles the capital with as many as 5,000 bikes starting today.

The initiative, funded by Transport for London, sponsored by Barclays Plc and operated by Serco Plc, could lose as much as 5 million pounds a year, according to Kulveer Ranger, Johnson’s transport adviser. At best, it will break even as subscribers pay six pounds for a two-hour rental or 50 pounds for a full day. The first 30 minutes, though, are free.