Report by Pathavee Kankaew

Red songthaew, once a Chiang Mai icon, may soon vanish from the city’s streets, outpaced by the rise of ride-hailing apps. Some critics blame the operators' failure to adapt, but the challenges they face are also rooted in failing government policies.

Red songthaew have long been a staple in Chiang Mai, providing a transport service for locals and tourists for 40 years. The post-COVID-19 tourism boom should have marked their recovery. Instead, they find themselves facing an existential crisis.

In May, news spread nationwide following an online discussion where a Facebook user voiced concerns that they might soon disappear from Chiang Mai’s streets. Without intervention, their extinction could be imminent.

“Tuk-tuk and Chiang Mai's red buses are now nearing a dead end. Once the tourist season ends, drivers are close to selling their vehicles. Those who rent also have to return the vehicles, take on the burden of family expenses, and lose their jobs. Most of them are retirement age. The main factor is the influx of foreign-owned Grab vehicles into the city. Right now there are lots in Chiang Mai. Compared to the past, before Grab arrived, tuk-tuk and red songthaew could do alright financially to a certain degree. But now, it has flipped completely, and they’re at a dead end, and can’t go on. In the future, only photos and memorials may remain for show in front of restaurants. Let’s not let it come to that. I’d like to beg various sectors to help restore the reputation of our hometown’s tuk-tuk and red songthaew to what it used to be. That would be very good before it’s too late.” - A Facebook post which appeared in Khao Sod, Matichon and Thai Rath in May.

Instead of receiving support, the feedback has been largely negative. Many social media users believe the issues faced by red songthaew drivers are self-inflicted. While this may be true, this is only the tip of the ice berg.

“It’s their own fault. I come from Chiang Mai. The first time I took a tuk-tuk to run an errand, we agreed on a price. But while driving on the way at late night, the driver spotted a foreigner standing on the side of the road. He stopped , asked how the foreigner is doing, then put me out right there, and took the foreigner instead. I still remember it well until today. I haven’t taken a tuk-tuk again for already 7 years. As for the red vehicles, I got on at the Night Plaza intersection and got off in front of Rajavej Hospital. The driver charged me a hundred, but someone else who got off at the same stop, and had got on before me, only paid 40 baht. Do you feel taken advantage of? I sat for a shorter distance than someone else, but when I called him and he stopped for me, he charged me 100 baht just because I was from somewhere else.” - An example of a complaint from internet users, according to Matichon’s report.

Losing dominance

The origin of red songthaew dates back to 1975 when local transport operators in Chiang Mai came together to form a group. Later, they were granted 21 concessions for routes within Chiang Mai city and were unified under a single colour by the Nakorn Lanna Transport Cooperative Limited. The cooperative was officially established in 1978. The 1979 Land Transport Act required that concession holders for passenger transport services be legal entities.

Red songthaew currently operate in two formats: a queue-based system, where drivers wait their turn to pick up passengers, and a circulating service around Chiang Mai’s city centre. According to the Cooperative, fares are capped at 30 baht per person for circular routes, while chartered trips have a maximum of 250 baht per trip within the Second Ring Road.

However, these official descriptions are often met with amusement by internet users. For years, passengers have complained about inconsistent fare pricing, with tourists and those unfamiliar with the local language often charged higher rates. In 2017, as many as 8,600 people signed an online petition on Change.org, calling for improvements to service quality.

Red songthaew in Chiang Mai at the Arcade Bus Station, image from 2018 (Photo from TCIJ).

Even research verifies the notoriety of red songthaew drivers. A 2020 study by Asst Prof Dr Raweewan Patsaman on user attitudes revealed that although convenience and accessibility fostered some positive perceptions, negative views were widespread. Common complaints included impolite behaviour, drivers refusing passengers, inconsistent fares, price gouging, limited route coverage, delays, and safety concerns.

Nakorn Lanna Transport Cooperative has long struggled with quality control, unable to effectively monitor its members' operations. Some members own multiple vehicles and lease them to drivers who may lack proper licenses or adequate training. With limited competition, the business remained lucrative despite many years of passenger dissatisfaction .

According to Raweewan's research, drivers were required to pay up to hundreds of thousands of baht to cooperatives and related agencies in corruption schemes designed to maintain market dominance. They enjoyed this status quo until competition from ride-hailing services intensified, putting increased pressure on operators.

Uber first launched in Bangkok before expanding to Chiang Mai in 2016. A year later, Uber exited Southeast Asia, selling its operations to Grab, which had been operating in Thailand since 2013 and expanded to Chiang Mai that same year. With their consistent fares and convenience, app-based ride-hailing services have grown rapidly, adding an estimated 3,000 to 4,000 vehicles to the roads.

While ride-hailing app drivers often register their vehicles as personal and operate covertly, owners of registered service vehicles must bear the cost of renewing licenses twice a year. In 2018, some red songthaew drivers still managed to earn up to 1,000 baht per day, enough to meet household and daily needs. However, red songthaew are gradually disappearing. The number of vehicles declined from 2,800 in 2017 to 2,465 in 2018, and around 2,100 by May.

Challenged by newcomers, Nakorn Lanna Transport Cooperative faced internal turmoil. In 2018, Singkham Nanti resigned from the chairmanship amid complaints about his qualifications and alleged mismanagement which resulted in a 40 million baht loss. Singkham defended his actions, explaining that a 100 million baht loan had been used to purchase land for constructing an office, gas station, and rental buildings, all with the aim of generating long-term profits. The conflict highlights broader issues facing the cooperative as it struggles to remain viable in an increasingly competitive market.

Demands unmet

In May, Nakorn Lanna Transport Cooperative convened a three-hour meeting in Nong Hoi Subdistrict, Mueang District, Chiang Mai, with eight non-app operators from Chiang Mai and neighbouring provinces. The 70 participants worked together to draft a nine-point Memorandum of Understanding (MOU) to be submitted to relevant government agencies, urging measures to ensure fair competition.

The MOU calls on government agencies to enforce laws on ride-hailing, requiring Chiang Mai registration, compliance with public transport regulations, specific insurance coverage, and vehicle standards for age, mileage, and engine size. It also demands clear display of the app company’s logo and limits on the number of vehicles to ensure quality control.

During the meeting, it was proposed that the group should hire a lawyer to file a case with the Chiang Mai Administrative Court to request temporary protection for service vehicles that comply with the law, and to take action against officials who fail to enforce Section 157 of the law. This is based on the claim that over 80% of app-based vehicles are illegal.

The proposal would be submitted to key authorities, including the Prime Minister’s Office, Ministry of Transport, Department of Land Transport, Governor of Chiang Mai, Provincial Administration Centre, and the Chiang Mai Transport Office. Nathawut Chokthawiphun, Chairman of Nakorn Lanna Transport Cooperative, who chaired the meeting, hopes their efforts will also gain support from the 40,000 vehicles nationwide within the Bus Service Cooperative Federation of Thailand.

Nathawut hoped the government would address the issue within three months. If no action was taken, he warned that they might mobilize over 30,000 people—including public transport drivers, hired vehicle operators, and their families—to protest in Chiang Mai. Five months past the July deadline, however, there has been no further action from the government or the parties to the MOU.

In addition to red songthaew, the rise of ride-hailing apps is also posing a challenge to other transport services. These include approximately 100 metered taxis, 823 yellow songthaew, 100 white songthaew, 70-80 green songthaew, 50-60 blue songthaew, 1,000 hired vans and 100 tuk-tuk, which serve different areas of Thailand’s second-largest province.

According to a February report, the Department of Land Transport has certified 11 ride-hailing apps, yet many vehicles operating through these apps have not been registered with the Department.

If spotted by officials, offenders will be penalized under the 1979 Vehicle Act, incurring fines of up to 2,000 baht for using private vehicles to transport passengers for hire. Currently, only the driver is subject to these fines, as the law lacks provisions to penalize app service providers. To address this gap, the responsible agencies are drafting new legislation that could impose fines on app providers, ranging from 1,000 to 10,000 baht.

Enforcement of these laws remains uncertain. Even under military rule, efforts appeared largely symbolic. In Chiang Mai, drivers' unions organized a 'hunt team' to gather evidence and file complaints. It remains unclear how many of these complaints resulted in concrete enforcement actions. Needless to say, targeting drivers and service providers is hardly a sustainable solution for the red songthaew.

Self-inflicted crisis?

In their minds, the drivers of red songthaew now blame themselves for being unable to compete with ride-hailing apps, a feeling intensified by widespread criticism on social media. During the press conference following the same May meeting, Nathawut offered a sombre response to the media.

"The issue is that the red four-wheelers have been criticized by society and this reflects that we have done this to ourselves, and so fewer passengers use the service. We’d like to accept this in order to correct our shortcomings and develop our service to be better,” said Nathawut.

This is a change in tone from seven years before, when they deflected criticism in a report, stating that “part of providing a service may include collecting expensive fares or poor manners. We admit that it may happen sometimes, but it is a minority, because it must be accepted that drivers are people making a living, not all of whom have achieved a high level of education. The cooperative has taken this issue seriously and there have been ongoing efforts to improve the image by providing training and asking for cooperation.”

With growing competition now threatening their survival, they are more willing to adapt than ever. However, they need support to do so.

“The Federation of SMEs has developed an application for red four-wheel vehicles to compete in terms of service and price with the vehicles using 6 apps which are registered with the Ministry of Transport, which can provide a service across regions or provinces, to offer an alternative to future users of the service.” said Nathawut.

It remains unclear if this new app holds more promise than the previous attempt. In 2017, they launched an app called Ubar Rod Dang, available on both iOS and Android. It was taken down not long after. Reports claimed it was downloaded by 1,400 users on Android, though some questioned this figure, observing that the download count seemed to range between 100 and 500—excluding downloads on other platforms.

Users complained about serious issues with the app. According to a report, there were no actual passengers or drivers using the app. When requesting a red songthaew, the screen had to remain open continuously, as closing the screen stopped the call immediately. Passengers also had no way of knowing if a vehicle would actually come.

In addition, red songthaew drivers couldn’t tell which vehicle was closer to the passenger, risking wasted time if a nearer vehicle picked them up first, as there was no queue system like Uber or Grab Taxi. Furthermore, there was no login system, so identity verification was impossible, allowing fake requests from anywhere.

While many factors contributing to the crisis are undoubtedly self-inflicted, it is also true that red songthaew drivers have been trying to compete with multinational corporations, which have advantages over them in nearly every aspect, all while shouldering rising living costs and registration fees to comply with legal requirements.

As a local transport service, they need technological support, business guidance, anti-corruption mechanisms, a monitoring system to maintain quality and fair pricing, as well as exit plans to address oversupply. Additionally, government subsidies and support are essential to level the playing field against large corporations. However, the government's response has fallen short of responding to their needs.

Policy Failures

Srettha Thavisin, the then Prime Minister, presiding over a meeting to monitor the progress of various projects related to transportation and travel systems in Chiang Mai Province at the 41st Wing Meeting Room in Chiang Mai on January 11, 2024 (Photo from Matichon).

Power over public transport is concentrated in Bangkok, with minimal autonomy granted to Local Administrative Organizations (LAOs). The 1979 Land Transport Act designates the Provincial Land Transport Committee—whose members are mostly appointed in the capital—as the authority overseeing public transportation policies within each province.

This committee is responsible for granting concession licenses, setting fares, determining vehicle types, and defining routes. According to the Act, the provincial governor serves as the chairperson of the committee for a term of four years. However, governors in Chiang Mai typically serve for an average of only two years, resulting in policies that are often unresponsive to local needs.

In August, the People’s Party proposed a draft amendment to the Land Transport Act, suggesting that the chairperson of the transport committee be changed to the president of the provincial administrative organization (PAO). The proposal also aimed to increase the number of local representatives on the committee from one to five. However, the draft did not pass in parliament.

When policies for the provinces are formulated in Bangkok, they often lack effectiveness and are seldom backed by the necessary resources. In January, former Prime Minister Srettha Thavisin announced his focus on two key issues to improve Chiang Mai’s public transport system, one of which was the conversion of red songthaew into electric vehicles (EVs).

Currently, one vehicle has been converted into an EV and is operating on the green songthaew route from Mueang District to San Sai, with additional vehicles set to join. However, the project faces several challenges, including conversion costs ranging from 500,000 to 600,000 baht per vehicle.

Limited repair facilities and the need to import parts from China have slowed progress, with only about 10 vehicles being modified per month. At this rate, it will take 17.5 years to convert all 2,100 red songthaew to EVs in Chiang Mai. While this initiative may make the service more attractive to passengers and help drivers compete in the market, the measure is too little and too late.

Underfunded Public Cause

After the coup d'état by the NCPO in May 2014, public transport in Chiang Mai was re-organized by the 33rd Military Circle, with the Chang Phueak Bus Terminal designated as the main station for the re-organized red songthaew routes and also as the starting point for the inter-district songthaew. Photo taken in August 2014 (Prachatai file photo)

Like other private operators, red songthaew drivers tend to prioritize high-traffic routes, leaving less-populated areas underserved. To address this issue, the government has made several attempts to make the red songthaew function more like a public bus service. However, these efforts have repeatedly faltered due to a lack of sufficient resources to support the vision.

From 2003 to 2006, the government attempted to regulate red songthaew as public buses to support mega-projects like the Night Safari and the 2006 International Horticultural Exposition. However, these efforts faced numerous challenges and ultimately failed after the conclusion of the horticultural exposition.

After the 2014 coup led by Gen Prayut Chan-o-cha, the National Council for Peace and Order (NCPO) wanted to showcase their administrative ability by trying to manage the public transportation system in Chiang Mai, particularly regarding the red songthaew. The NCPO assigned the 33rd Military Circle and the Chiang Mai Provincial Transport Office to organize the public transport system by inviting transport operators and cooperative leaders to meetings.

At the outset of the reorganization, 1,480 out of 2,300 red songthaew expressed interest in participating. However, by the time of implementation, only 550 vehicles were actually involved. The reorganization divided the red songthaew routes into 11 lines covering areas in Chiang Mai, with service hours set from 5:00 am to 8:00 pm, releasing vehicles every 20 minutes. The fare was capped at 20 baht per trip for the entire route, with a reduced fare of 10 baht for monks, novices, and students in uniform. Route 12 utilized the municipal buses of Chiang Mai.

The reorganization fell short of expectations. Drivers cited that “the daily subsidy of 100 baht is insufficient to cover the operating costs, which range from 800 to 1,000 baht per day.” With fuel costs of around 150 baht per trip and only 2-3 passengers on average, the new routes have struggled to attract enough passengers.

A study by Dr. Pun Thiangburanathum, head of a research unit at Chiang Mai University, highlighted that changing public attitudes towards public transportation takes time. Following the findings, the initial 11 routes were cancelled, and only the higher-demand routes remained. Five routes were relaunched in December 2014, followed by three more in February 2015.

Each route had 10 red songthaew participating in the trial, with a compensation rate set at 140 baht per trip. The fare structure started at 15 baht for the general public and 10 baht for monks, novices, and students in uniform. Promotional coupons were also given out at key locations, such as educational institutions and tourist attractions.

The initial trial results indicated that approximately 1,400 passengers used the service, generating an average revenue of 19,850 baht per route. In 2016, Dr. Pun reported additional results, indicating an increase in the number of passengers on each route. A satisfaction survey conducted with 1,477 respondents revealed that passengers were pleased with the clear signage for routes and schedules.

However, the drivers continued to face financial losses. Delays in budget disbursement from the local authorities forced operators to seek additional support from the Chiang Mai PAO and the Pingkan Nakorn Development Office (Public Organization). Unfortunately, this support was obstructed by bureaucratic delays and regulations from the Ministry of Finance.

After further reorganization efforts by the military government and interest from both public and private sector players in various routes, the Lanna Transport Cooperative cancelled all fixed-route bus lines in 2017 due to ongoing losses. Since then, it has operated in its current form. So far, the government has remained unsuccessful in transforming the red songthaew service into a viable public transportation solution.

Misplaced Investment

From the first to the seventh editions, the National Economic and Social Development Plans designated Chiang Mai as a regional centre. However, these plans prioritized infrastructure development over critical improvements to the city's transportation systems. Recently, the focus has shifted even further toward road construction and supporting the expansion of Chiang Mai Airport, with little attention to more localized transport solutions such as the red songthaew services.

While Bangkok cannot resolve every issue in the nation, its centralized approach limits the ability of local authorities to tackle problems in a way that meets local needs. The Chiang Mai Provincial Administrative Organization (PAO), constrained by central government directives, often aligns its policies with those of the national government, whether due to top-down mandates or the chilling effect of national priorities.

The 2024 budget of the PAO reveals a stark imbalance in investment priorities: 73% of the total budget, approximately 224,975,400 baht out of 304,751,510 baht, has been allocated to the construction and improvement of roads in various districts. While these road developments may benefit local residents, they do little to address the immediate challenges faced by the city's public transport system.

The neglect of affordable and reliable public transport options, such as a more subsidized songthaew service or budget-friendly alternatives, has led to worsening congestion, poorer mobility, and increasing reliance on private vehicles. This misplaced focus on roads over transport networks underscores the need for a shift in priorities toward sustainable, affordable, and integrated transportation solutions that better serve all residents.