What happens if someone rents one of these stupid bikes and then someone else steels it from them before they can return it? Who's going to pay for it then? Probably us taxpayers. Also, these rental racks take-up space from the parking meters which us taxpayers also fund through penalties.
Pretty soon we're going to see the ghetto people driving these stolen bikes for free and there will be none in the racks and we will be paying city penalties for the parking spaces taken up by the racks. Voodoo economics.