Here is a quick run down.
Using a smartphone app you locate a bike (bike has GPS and a data plan)
Type in your pincode (Bike has keypad)
Ride it and leave it wherever with in the zone.
The great thing about this is you don't need to have dedicated bike drop off locations. So you have a big savings in infrastructure costs.
Anyone think this could be a good business idea for Vancouver? Might be able to get some funding from Vancouver.
Social Bicycles announces availability by end of summer, we go hands-on (video) -- Engadget SoBi | Home