The bike gets an electrical assist from a drive mechanism designed as part of the rear wheel hub - which is designed in the shape of an osmanthus, Hangzhou's city flower.

Thousands of photovoltaic power stations will be built and connected to the public bicycle stations, providing continuous energy to charge the batteries.

Bike rentals will follow the previous standard - no charge for the first hour, 1 yuan ($0.15) per hour for the next two hours, and 3 yuan per hour for time over that. Battery rental is 1 yuan for half an hour.

People will be able to rent a battery from a cabinet installed nearby, and the cabinet works as the battery charging station. Each cabinet can hold 24 batteries. As a bonus, the battery can be used to charge a cellphone, too.

The company has applied for patents on the innovative technology for the hybrid power bicycle.

"It is not about competition. We are in the public welfare business. This innovation could increase residents' efficiency, saving them time," Wu said.

"The charge for portable batteries may even out the rising manpower cost."

Wu Lei, a 33-year-old salesman in Hangzhou, told China Daily, "It is good news for me. I will definitely choose the smart bicycle."

Wu works about 12 km from his home. Currently, he usually drives to work. But parking and traffic jams are a headache.

"It will save me time and money," he said.

Hangzhou was one of the first to create a public bicycle transportation service in China. It has had bike rentals since 2008.

shixf@chinadaily.com.cn