It appears that the Daily Deal space is getting a bit more crowded as crowdsourced directory service Yelp recently confirmed that they have been testing Groupon-style deals in Sacramento.

http://techcrunch.com/2010/07/26/yelp-gears-up-to-take-on-groupon-starts-testing-local-deals/

Switched.com later reported that the above mentioned TechCrunch Groupon story was blown out of proportion.

http://www.switched.com/2010/07/27/yelp-is-not-competing-with-groupon/

Time will tell.