diff --git a/server/src/cli.rs b/server/src/cli.rs
index 144e56e..0725e64 100644
--- a/server/src/cli.rs
+++ b/server/src/cli.rs
@@ -4,14 +4,25 @@ use crate::{Config, Global};
 use axum::extract::FromRef;
 use axum::Router;
 use clap::Parser;
+use std::io;
 use std::path::PathBuf;
 use std::sync::{Arc, RwLock};
 use tower_http::trace::TraceLayer;
+use tracing::debug;
 use tracing_subscriber::{layer::SubscriberExt, util::SubscriberInitExt};
 
 #[derive(Parser)]
 #[command(author, version, about, long_about = None)]
 pub struct Cli {
+    /// Directory where package archives will be stored
+    pub pkg_dir: PathBuf,
+    /// Directory where repository metadata & SQLite database is stored
+    pub data_dir: PathBuf,
+
+    /// Database connection URL; either sqlite:// or postgres://. Defaults to rieter.sqlite in the
+    /// data directory
+    #[arg(short, long)]
+    pub database_url: Option<String>,
     /// Port the server will listen on
     #[arg(short, long, value_name = "PORT", default_value_t = 8000)]
     pub port: u16,
@@ -22,10 +33,6 @@ pub struct Cli {
         default_value = "tower_http=debug,rieterd=debug"
     )]
     pub log: String,
-    /// Directory where package archives will be stored
-    pub pkg_dir: PathBuf,
-    /// Directory where repository metadata is stored
-    pub repo_dir: PathBuf,
 }
 
 impl FromRef<Global> for Arc<RwLock<RepoGroupManager>> {
@@ -42,19 +49,31 @@ impl Cli {
             .init();
     }
 
-    pub async fn run(&self) {
+    pub async fn run(&self) -> crate::Result<()> {
         self.init_tracing();
 
-        let db = crate::db::init("sqlite://test.db").await.unwrap();
+        let db_url = if let Some(url) = &self.database_url {
+            url.clone()
+        } else {
+            format!(
+                "sqlite://{}",
+                self.data_dir.join("rieter.sqlite").to_string_lossy()
+            )
+        };
+
+        debug!("Connecting to database with URL {}", db_url);
+
+        let db = crate::db::init(db_url).await?;
         // let db = crate::db::init("postgres://rieter:rieter@localhost:5432/rieter")
-            // .await
-            // .unwrap();
+        // .await
+        // .unwrap();
 
         let config = Config {
-            repo_dir: self.repo_dir.clone(),
+            data_dir: self.data_dir.clone(),
+            repo_dir: self.data_dir.join("repos"),
             pkg_dir: self.pkg_dir.clone(),
         };
-        let repo_manager = RepoGroupManager::new(&self.repo_dir, &self.pkg_dir);
+        let repo_manager = RepoGroupManager::new(&config.repo_dir, &self.pkg_dir);
 
         let global = Global {
             config,
@@ -70,9 +89,11 @@ impl Cli {
             .layer(TraceLayer::new_for_http());
 
         // run it with hyper on localhost:3000
-        axum::Server::bind(&format!("0.0.0.0:{}", self.port).parse().unwrap())
-            .serve(app.into_make_service())
-            .await
-            .unwrap();
+        Ok(
+            axum::Server::bind(&format!("0.0.0.0:{}", self.port).parse().unwrap())
+                .serve(app.into_make_service())
+                .await
+                .map_err(|err| io::Error::new(io::ErrorKind::Other, err))?,
+        )
     }
 }
diff --git a/server/src/main.rs b/server/src/main.rs
index 8217909..e3dbf36 100644
--- a/server/src/main.rs
+++ b/server/src/main.rs
@@ -13,6 +13,7 @@ use std::sync::{Arc, RwLock};
 
 #[derive(Clone)]
 pub struct Config {
+    data_dir: PathBuf,
     repo_dir: PathBuf,
     pkg_dir: PathBuf,
 }
@@ -25,7 +26,7 @@ pub struct Global {
 }
 
 #[tokio::main]
-async fn main() {
+async fn main() -> crate::Result<()> {
     let cli = cli::Cli::parse();
-    cli.run().await;
+    cli.run().await
 }
diff --git a/server/src/repo/mod.rs b/server/src/repo/mod.rs
index de3e74d..b2942a4 100644
--- a/server/src/repo/mod.rs
+++ b/server/src/repo/mod.rs
@@ -45,16 +45,17 @@ async fn post_package_archive(
 
     let clone = Arc::clone(&global.repo_manager);
     let path_clone = path.clone();
+    let repo_clone = repo.clone();
     let res = tokio::task::spawn_blocking(move || {
-        clone.write().unwrap().add_pkg_from_path(&repo, &path_clone)
+        clone.write().unwrap().add_pkg_from_path(&repo_clone, &path_clone)
     })
     .await?;
 
     // Remove the downloaded file if the adding failed
-    if res.is_err() {
+    if let Err(err) = res {
         let _ = tokio::fs::remove_file(path).await;
 
-        return res;
+        return Err(err.into());
     }
 
     let pkg = res.unwrap();