An initial 200 bikes will be available to rent and they can be picked up and dropped off at various docking stations around the city.
Users will be able to hire bikes through an annual membership, on a daily basis, or for up to an hour using a smartphone app - with single journeys starting from £1.50.
We've put them really strategically across the city - so they're where people live, they're where people work...Adam McVey , Council Leader , The City of Edinburgh Council
The aim is to boost access to local education and employment opportunities and health and leisure services by providing and "a fun, healthy, affordable and environmentally-friendly" transport option.
The capital's hire scheme is being operated by Secro on behalf of Transport for Edinburgh (TfE). The first locations to host the bikes include Bristo Square, Waverley Bridge, Fountainbridge, Stockbridge and Charlotte Square.
Further hire points will be added as part of a rolling three-year programme, which aims to deliver 1,000 bikes by the end of this year.
Launching the scheme at the Meadows, endurance cyclist Mark Beaumont, who has tested the bikes, said: "They're really robust. I think the convenience and practicalities of these things mean that people are outside and are enjoying our beautiful city."
Matt McNulty from Serco said: "It's really easy to use and all we need to register you is your phone number and your credit card. All you do then is press one button and the system will tell you which bike to take. Indications are it does get people back on bikes and encourages active travel and just gets people fitter and happier..."