Birmingham has become the second UK city to launch a pioneering car sharing scheme which allows people to walk up to a car, get in and drive off.

Although London was the first UK city to host the car2go initiative, Birmingham has gone one better by running the scheme city-wide.

It becomes the 19th city in the world to operate the scheme in the wake of cities like Vancouver and Berlin.

The car2go initiative run by Daimler and Europcar was launched this week, with 250 Smart cars that emit just 98g/km of CO2, available to use over an area of 21 square miles.

Members sign up for £29.90 and are able to locate any available car through the car2go website, by using a free app or by walking up to an available car, swiping the card reader on the windscreen and driving off.

Once registered, journeys are charged at 35p per minute including fuel, insurance, road tax, parking and maintenance and customers do not have to return the car to the same parking bay where it was collected.

Roy Wilcox, sales and marketing manager for car2go, a partnership between Daimler and Europcar, said the Birmingham launch represented “a proud moment” for him as he was a native of the city.

Mr Wilcox said the project, initially being run as a 12-month pilot, was the first UK city-wide scheme, with the London scheme operating only in three boroughs.

He said he hoped thousands of users would sign up in its first year, though doubted whether Birmingham would be able to emulate the success of Berlin where more than 50,000 people signed up in the first 12 months.

“I don’t want to set a figure but hope it will be thousands in the first year and then becomes a long-term relationship,” he said. “Berlin has a population of three million but we are looking for healthy figures in Birmingham and a positive response.”

Details of the contract with the council have not been revealed but Mr Wilcox also dismissed any suggestions it amounted to “free parking”.

“It is essentially an agreement where we pay ‘x’ amount of money,” he added. “The city council wouldn’t be doing anything like this unless it benefited the city.”

“We are proud to launch car2go in Birmingham,” said Stefan Mueller, chief executive at car2go Europe GmbH. “Car2go gives you the ability to go where you want, when you want – and in comfort – but without all the costs associated with owning, running and insuring a car full-time.”

Councillor Tahir Ali, cabinet member for development, jobs and skills, said: “We want to develop a range of green transport initiatives, reducing traffic congestion and carbon emissions and encouraging people to think of alternative ways of getting about. I’m pleased to welcome car2go to Birmingham, particularly as they are making the city their UK headquarters, with the associated jobs that will bring.”

But not everyone has welcomed its arrival though, with one Jewellery Quarter resident claiming it was an insult to residents who have to pay £200 a year for a parking permit.

Akos Balsay, who lives in St Paul’s Square, said he was concerned car2go vehicles could be parked and left indefinitely in any pay and display bay in the city, including St Paul’s Square, while people who live there have to park in neighbouring streets even though they pay £200 for a resident’s parking permit. He said: “We have paid £200 a year for a permit but we can’t park outside our own residences – even though we could up until two years ago – we have to use neighbouring streets. The car2gocars can park anywhere they like and users don’t even have to pay.”

But a spokesman for Birmingham City Council dismissed claims of “free parking” and stressed the council was being paid through a commercial agreement with car2go.