Group leader Joey Gibson and other organizers will instead hold a press conference at 2 p.m.
The same day, Amber Cummings, organizer of the "No to Marxism in America" rally set to be held Sunday in Berkeley, sent a statement asking that "no one come to [her] event" out of fear of violence.
"I have concerns that Antifa and BAMN will attack my people attending the event and in good conscience I cannot risk this happening," Cummings wrote. "I am asking the people to not attend this event Sunday and I apologize for this. I just feel that terrorist groups like Antifa and BAMN are trying to incite riots and violence I will not let them succeed."
Cummings wrote that she will be the only person in attendance and urged others to stay away.
In a Facebook Live video, organizers of the Patriot Prayer rally blamed San Francisco city officials for not providing adequate security.
Many feared the event would attract white supremacists and other extreme right-wing groups and, in turn, counter protesters.
Still, organizer Gabriel Silva insists the event was not for extremists.
"It's not a white supremacy rally, it's not a neo-Nazi rally as it's been coined," he told FOX40.
Activists on the other side are also reacting.
"I'm a little bit surprised," Answer Coalition organizer Jamier Sale said.
Sale says he still plans to go to San Francisco this weekend in solidarity with counter protesters.
"If they're not there, it will be a victory march," Sale said. "We'll have basically succeeded in making sure that hate doesn't have a platform to speak."
Meanwhile, Silva doesn't consider the cancellation a defeat -- but a reasonable decision.
"I see this as the organizers of this rally coming forward to take responsibility that elected officials and law enforcement should have taken."