The three-wheeled tuk-tuks are being operated by the Lanna Red Motor Tricycle Cooperative,
The design has been improved to ensure better safety for passengers, according to the company.
Each red tuk-tuk will display the driver's name tag, its registration number, and telephone number to file complaints. They will also offer brochures promoting tourist attractions in Chiang Mai.
Caretaker Interior Minister Charapong Ruangsuwan said said the government aimed to development mass transportation systems in large provinces, particularly in Chiang Mai, to help relieve traffic congestion and provide greater convenience for visitors.
Mr Charupong was in Chiang Mai to officially launch the new service on Friday morning.