DLR firm to run £140m bicycle hire scheme

Plans to introduce a bike-hire scheme across central London akin to the Vélib in Paris have moved a step closer.

Transport for London today signed a £140million six-year contract with Serco, which runs the Docklands Light Railway, to operate the scheme.

First devised by Ken Livingstone, the plans are being taken forward by current Mayor Boris Johnson. A total of 6,000 bikes will be available for hire from next summer in nine central London boroughs and several Royal Parks, inside the Tube's Zone 1.

TfL believes the scheme will generate about 40,000 extra bike journeys a day. More than a quarter of the 400 docking stations, each holding 15 to 30 bikes, have been given planning permission. Bikes will be released by a smartcard - though the system will not be Oyster-compatible at the outset.

Details of the hire cost and bike design will be released later this year. Serco will use infrastructure used by the Bixi bike scheme in Montreal. Mr Johnson said: "I am thrilled Serco have decided to saddle up for London."