Boris Bikes
From my visit to London it seems that the Transport for London bike hire scheme aka "Boris Bikes" though properly Barclays Cycle Hire is working well. Mayor Boris Johnston created a system of cycle stations throughout central London where you can hire a bike for a ride. For a fee of £45 per year or £1 per day you can join the scheme. The hire prices seem strange and intended to encourage short term use. eg up to 30 mins is free, 1 hour is £1, but 2 hours £6 and 6 hours £35. Of course you could return the bike, wait 5 minutes, them get another bike to avoid charges. Stations are generally close together so this would be possible. The bikes seem heavy things so you won't be going fast and personally I wouldn't ride through the London traffic though there are plenty of parks. Worryingly few riders wear helmets. Barclays Cycle Hire
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