FILE PHOTO: Amazon logo is seen in this illustration created on February 11, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Dec 4 (Reuters) - Amazon is planning to end its long-standing partnership with the U.S. Postal Service as the ecommerce giant prepares to expand its nationwide delivery network, the Washington Post reported on Thursday, citing three people with knowledge of the matter.

The online retailer has long been the postal service's top customer, providing more than $6 billion in annual revenue in 2025, the report said.

The potential move could massively hit financial prospects for the independent government agency that has heavily relied on contracts with large delivery customers such as Amazon to fuel growth amid deep losses.

USPS posted a $9.5 billion loss last year and has accumulated more than $100 billion in losses since 2007, despite significant restructuring and legislative reforms.

The e-commerce giant is planning to pull the billions of packages it sends through the postal service by the end of 2026. The plans are not final and could change, the report said.

Amazon has made significant investments in expanding its fleet to prioritize faster shipping and attract more shoppers by growing its network to host more delivery stations as it races to beat competition from other retailers.

The company has been in talks with USPS over "negotiated service agreements," through which the mail agency locks in rates and hastens delivery for its largest clients, but so far they have largely concluded with no new deal, the report said.

Reuters could not immediately verify the report. Amazon and USPS did not immediately respond to requests for comment.

Postmaster General David Steiner met virtually with Amazon chief executive Andy Jassy on November 14, and the company hopes to reach an agreement, according to the report.

(Reporting by Ruchika Khanna and Zaheer Kachwala in Bengaluru; Editing by Joe Bavier, Shailesh Kuber and Leroy Leo)