The new service is the creation of a private company, Szeged-based Sund Magyarorszag Kft, which developed it with the help of a HUF 45 million EU grant through the Southern Great Plain Regional Operating Programme. The system was first scheduled to open on September 30, but stumbling blocks forced a postponement until March.

As with similar systems, the bikes would be for short-term rentals for short-distance trips around a circumscribed central area. After a free registration, users would pay HUF 200 per hour or HUF 800 per day. Users who check out bikes more than four times in one day would have their daily bill capped at HUF 800.

According to original plans, the system is targeted at tourists and other visitors and is not meant to compete with Szeged's public transport system.

The system would be fully automated, with registration done online and checkouts by mobile phone. Users would get a four-digit PIN code to be typed into the station console in order to release a bike.

The bikes themselves have solid rubber tires, making them puncture proof and also less attractive to thieves. Another security feature is GMS tracking. Users who stray outside the central operating zone would receive automated SMS warnings. Messages would continue to be sent and if not heeded, a service security officer would be dispatched to search for the bike.

Greg Spencer, an American expat, has used a bike to get around Budapest since 2002. He rants about cars and raves about cycling and other alternatives at  cyclingsolution.blogspot.hu