diff --git a/plinth/modules/storage/tests/test_functional.py b/plinth/modules/storage/tests/test_functional.py
index cdfc085c1..d0dd20bfb 100644
--- a/plinth/modules/storage/tests/test_functional.py
+++ b/plinth/modules/storage/tests/test_functional.py
@@ -3,6 +3,7 @@
 Functional, browser based tests for storage app.
 """
 import pytest
+
 from plinth.tests import functional
 
 pytestmark = [pytest.mark.system, pytest.mark.essential, pytest.mark.storage]
@@ -16,7 +17,7 @@ def fixture_background(session_browser):
 
 def test_list_disks(session_browser):
     """Test that root disk is shown on storage page."""
-    if functional.running_inside_container:
+    if functional.running_inside_container():
         pytest.skip('Storage doesn\'t work inside a container')
     else:
         functional.nav_to_module(session_browser, 'storage')
diff --git a/plinth/tests/functional/__init__.py b/plinth/tests/functional/__init__.py
index d8927acae..e162f4021 100644
--- a/plinth/tests/functional/__init__.py
+++ b/plinth/tests/functional/__init__.py
@@ -439,9 +439,17 @@ def service_is_not_running(browser, app_name):
 
 def running_inside_container():
     """Check if freedombox is running inside a container"""
+    # If the URL to connect to was overridden then assume that we are running
+    # tests on a different machine than the machine running freedombox. Assume
+    # running inside container to be conservative about tests.
+    if config['DEFAULT']['url'] != 'https://localhost':
+        return True
+
+    # If URL is not overridden then testing code and freedombox are running on
+    # the same machine. Proceed with a proper test.
     result = subprocess.run(['systemd-detect-virt', '--container'],
-                            stdout=subprocess.PIPE)
-    return bool(result.stdout.decode('utf-8').lower() != "none\n")
+                            stdout=subprocess.PIPE, check=False)
+    return result.stdout.decode('utf-8').strip().lower() != 'none'
 
 
 ##############################