The did that two summers ago in Lexington Ky. They bought 50 Trek hybrids and gave out over 300 licenses to people who showed up at the meeting. With the license you got a universal key that could open all the u-locks that came on the bikes.

The problem came about two weeks in when people were riding them out of the city limits, and of course theft. By the end of the summer there were only 3 bikes known to still be in the city...It could work if people would be honest.