In Barcelona we're suffering a process of making the whole city available for bikes and its one of the most wonderful things you can see. Almost everyone uses bikes to go work. It's healthy, it's confortable, and you don't need to pay taxes or insurance. I think it's a brainless option.
BTW: I forgot to mention my city runs a public bycicle program since 8 years and it's a total success. For 40€/year you get full access to a bicycle to move around the city without restrictions. I think it was the smartest move the city did.