Groupon?s decision to delay taking the company public may have some nervous that the daily deals party is over. However, it is more likely a reflection of a souring economy than anything else.

Groupon said in June that it planned to raise up to $750 million through an initial public offering that was scheduled for the end of this month. The IPO postponement under consideration by the company this week likely reflects a desire to wait until the current economic uncertainty disappears and its real-time deals offering Groupon Now gains further traction.

?It is not a surprise that Groupon is postponing,? said Rajeev Chand, managing director and head of research for investment bank Rutberg & Co., San Francisco, CA. ?We have been hearing that the IPO market is tightening due to the recent downturn and high level of volatility.

?The potential for deals remains just as strong now as it was a few years ago? he said.

?If anything, we believe the opportunity for deals/offers/rewards is even greater than we understand now, as mobile has not yet taken its effect.?

Instant deals
Certainly, Groupon, Google and others continue to embrace daily deals.

Google said this week that it has expanded Google Offers into five additional cities. The search giant also recently gave a boost to Google Offers by promoting it on the homepage for the first time.

For Groupon, the delay in going public may give the company time to strengthen its offering.

?The delay might work to Groupon?s advantage if major programs that add more depth to the company, such as the GrouponNow ?instant deal? program, can show promising early results,? said Peter Krasilovsky, vice president at local media research firm BIA/Kelsey, Chantilly, VA.

?At the same time, it could crash down if new rivals such as Google were to show that they will seriously cut into market share, or if Groupon?s own results start to fade,? he said.

Groupon grew quickly as new consumers caught on to the idea of receiving daily local deals on their computer or via a mobile device.

But, it is precisely because of this quick growth through new customer acquisitions that has some questioning how the company will drive revenues once new customers stop signing up.

Groupon was also asked by the Securities and Exchange Commission to remove an unusual accounting metric after it announced plans to go public, bringing the company some unwanted scrutiny.

Growing competition
Groupon?s recent decision to postpone taking the company public also comes at a time when some of the initial bloom on daily deals may be fading.

The daily deals space is getting crowded as more companies enter the space, which is making it tougher for daily deal services to offer compelling deals to consumers.

Additionally, traffic fell for Groupon.com and Livingsocial.com in July, according to recent data from Kantar Media. At the same time, Yelp Deals has been scaling back and Facebook recently got rid of its Facebook Deals altogether.

?Deals are beginning to look pretty much the same to consumers,? Mr. Krasilovsky said.

?I think Groupon?s issuance of the IPO might reflect a turning point where people turned skeptical about the long term value of the deals space,? he said.

However, Groupon?s IPO postponement could be good news for the competition.

?The postponing of Groupon going public means all the other deal of the day competitors can keep up the fight, as opposed to being beaten by an overcapitalized competitor or bought by them,? said Bryon Morrison, president of the wireless practice at The Marketing Arm, Dallas.

Overall, the daily deals space continues to be strong.

Not only that, but Groupon is still the one to beat here.

?Groupon is still the 800lb gorilla in the daily deals space and they will still command a leader?s share value when they make the move to go public,? Mr. Morrison said.