Canvas allows instructors to create student groups, a feature that does much more than dividing up a class into smaller sections for projects. Groups in Canvas actually become a smaller, internal version of the course with many tools designed to let students collaborate on projects and assignments.
As an instructor, you can assign students manually, or allow Canvas to generate the group membership. You are allowed to view all the activity within a group, so you can monitor the progress and interact with the group easily. You can even assign group leaders and move students into different subgroups. If your students are turning in a group project, only one assignment needs to be submitted. The SpeedGrader will submit the grade and share all the comments/feedback with all the group members automatically.
The features for students make group projects more accessible. The students can store and share files within the Group, start and continue discussions, send messages, and create collaborations. It’s a great built-in tool with shared communication tools.
More information about Groups is available in the official Canvas Documentation.