Good luck to them! more jobs and competition is never a bad thing
Excessive competition leads to a boom/bust economy in an Industry, where new entrants suck the capital out of the system during peaks and the stable businesses are left with less fat to survive slow periods.
Boom/bust is terrible for employees. Without a stable company to build up terms and conditions of employment you get constant erosion of remuneration. Virgin is a good example, people doing the same job for the 'reset' company on 25% less. Imagine how much in conditions Qantas employees would lose if it was reset, which is entirely possible if things keep going this way. And it's not just yearly salary losses, it's build up of entitlements sick leave, long service leave etc. You could have 3 months + of sick leave after ten years at one company which would cover you for many issues that arise as you get older, combined with LSL you could have 6 months to a year off on decent pay. If your company is reset every 5 years then you have maximum 5 years of leave build up, lucky if you can cover the gap between becoming sick and insurance kicking in, something to really consider as you age.
I'd hazard a bet the entry level conditions at this startup are not going to be world beating packages.