Agreed. If the bike doesn't get returned, simply charge the account for the cost of a new bike.
It would also be helpful (and maybe costly) to implement some RFID solution to keep track of the unique bikes and the user pairs. If a bike is damaged, the rider can fill out a form online and the company can charge-back the previous user if its not standard wear and tear. This would cut down on the vandalism of the bikes.
And the pedals could power the transmitter. It could work on a dual RFID solution, one in the bike, one in your rental card. Riding the bike without a renters card could then trigger the giant sky magnet to aim at that bike and suck up the thief.
It would also be helpful (and maybe costly) to implement some RFID solution to keep track of the unique bikes and the user pairs. If a bike is damaged, the rider can fill out a form online and the company can charge-back the previous user if its not standard wear and tear. This would cut down on the vandalism of the bikes.