The City of Vancouver has approved its long-awaited bike share program, which is expected to cost taxpayers $6 million upfront for cycles and docking stations.

Councillors passed a plan Tuesday to launch the program in early 2014 with 25 stations and 250 GPS-equipped bikes, then expand a few months later to 150 stations and 1,500 bikes.

The stations will be located every two to three blocks and feature helmet dispensers for safe riding.

The city has agreed to help Portland-based operator Alta Bicycle Share purchase the startup infrastructure, and is expected to contribute a further $500,000 annually.

Another $1 million for initial staffing and signage will be paid for through additional sponsorships and donations.

Alta Bicycle Share estimates the program will break even at the start and eventually deliver surpluses; the city will collect 50 per cent of all profits made.

Annual memberships will cost $95, but users can opt for one-month or one-day memberships for $20 and $5, respectively.