Looks like Instagram wants to cover as much of the photo-based apps as possible. Their latest app targets apps like Pic Collage, Photo Grid, and such. Earlier today, they unveiled their Layout app to make collages quickly.
Layout allows you to drag + drop photos, pinch-to-zoom, pull sides, flip, rotate, custom arrangements, mirror effects and more. You can also take photos within the app instead of going to Instagram and then going back to Layout.
The app is only available for iOS today and will make its way to Android in coming months.