Capable of carrying two bikes, the custom-built racks resemble a cross between the traditional farm truck "bull-bars" and a car roof rack, which is fixed to the front of the bus.
Otago Regional Council support services manager Gerard Collings said the new bike racks were being phased in on buses as the different routes around the city came up for tender.
"Unfortunately, they won't be available on every bus straight away, because of design line and delivery delays, but we hope to have them all ready within the next three weeks," he said.
Ritchies Transport and Mosgiel Coach Services are the first bus companies to offer the service to passengers in Dunedin.
Ritchies Dunedin branch manager Malcolm Budd said five buses had been fitted with the custom-built bike racks and more vehicles were scheduled to offer the service soon.
The bicycle-bar buses will travel Ritchies routes between Opoho and Shiel Hill, and Pinehill to Lookout Point, while Mosgiel Coach Services vehicles will offer the service between Concord, Kaikorai Valley and the University of Otago.
Spokes Dunedin cycling advocate spokeswoman Erika Buky said the racks were a welcome addition for local cyclists, after the initiative found favour in other cities around the country.
"We're hoping that enthusiasm for the service will encourage rapid adoption of racks on other bus routes," she said.
Dunedin's steep hills, large area, and changeable weather all presented a challenge to cyclists, which the racks would help address.
"They have the potential to make life much easier for people who want to ride their bikes for transportation but don't want to make an endurance event out of it," she said.
The new racks have been inspected by a Dunedin City Council road engineer to verify they did not present any "practical" problems at bus stops, or elsewhere along their routes, DCC transport operations manager Evan Matheson said.