I've seen them pop up all around me, in small convenience stores and even restaurants. I was wondering if it's a good option to buy a gift for someone else, or are the fees too high and it's not worth it? Also I'm not sure how it works but figuring they give you a private key, and how safe is that?
It isn't safe, it's cost-inefficient and if you have an alternative (which everyone does) then use the alternative.
The alternative?
P2P markets like
AgoraDesk, which allows you to trade Bitcoin to-and-from for cash, gift cards and more. The fee is 50-80℅ lower than Bitcoin ATMs, so it's a no brainer to try P2P marketplaces before using an ATM.
In terms of safety, P2P is a lot safer than how ATMs go about their operation.